Courts take a broad view of new Small Business Restructuring legislation – First appointment tests various aspects of the new processes
Well here we are at the end of March 2021 and following their introduction on 1 January, the new
This update follows on from Greg Quin’s articles from 2019 and 2020 regarding the concept of Director Identification Numbers
SIGN UP TO OUR MONTHLY NEWSLETTERS
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