When a company is experiencing cash flow difficulties, directors will often loan money to the company to enable it
When a person is made bankrupt by way of a Sequestration Order, Section 54(1) of the Bankruptcy Act 1966
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Engage with us early if you see rough waters ahead
The ‘Safe Harbour’ provisions were enacted in September 2017 and provide directors with an exception from a personal insolvent trading liability where they are developing courses of action which are reasonably likely to lead to a better outcome for the company than the immediate appointment of an external administrator.
The new provisions are designed to foster a more entrepreneurial approach from directors in an effort to overcome the Corporations Act insolvent trading provisions.
In determining whether a course of action is reasonably likely to achieve a better outcome, the provisions make reference to:
Certain matters must be done in order to rely in the Safe Harbour provisions, including:
At HLB Mann Judd Insolvency WA, we are equipped to take on a Safe Harbour engagement for you or your client.
If you require further information regarding Safe Harbour, please make contact with us on 08 9215 7900