Get Protection from personal claims for insolvent trading while you develop and implement a Restructuring Plan for your company.

On 19 September 2017 amendments, to the Corporations Act 2001 commenced which create a “safe harbour” for Directors to protect them from personal liability for debts incurred by an insolvent company in certain circumstances.

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Why the need for Safe Harbour

Prior to the amendments, the provisions of the Corporations Act governing corporate insolvency focused on the need for Directors to appoint Voluntary Administrators of a company if they suspected that the company was insolvent in order to avoid the risk of the Director being found personally liable for debts that the company incurred whilst it was trading insolvently.

The appointment of a Voluntary Administrator is frequently followed by the appointment of a Liquidator and results in the total loss of any goodwill of the business of a company and the fire sale of assets and little or no recovery of debts for unsecured creditors.

The purpose of the safe harbour provisions is to encourage a culture of restructuring in Australia by offering protection to Directors who are proactively taking steps to achieve a better outcome for the company than the outcome likely to flow from the immediate appointment of an Administrator or Liquidator.

The new safe harbour provisions are found in Section 588GA of the Corporations Act and effectively provide a carve out from the existing insolvent trading regime in Section 588G.

What Company Directors who suspect insolvency should do.

Call now to speak to one of our Insolvency & Restructuring Lawyers

1300 553 343

If you suspect your company may be insolvent, invoke the Safe Harbour today.

Our plain English Guide provides a summary of the Safe Harbour Laws and what directors who suspect insolvency should do.

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PART I

Safe Harbour & Directors’ Liability for Insolvent Trading

 

  • Why the need for Safe Harbour
  • Insolvent trading & Directors’ Personal Liability
  • When is a Company Insolvent
  • What is “Safe Harbour”?
  • What is a Better Outcome
  • What is Restructuring?
  • Conditions for Safe Harbour Protection
  • Period of Safe Harbour Protection
  • Appropriately Qualified Advisors

PART II

What Directors who suspect Insolvency should do

 

  • What should Directors who suspect Insolvency do
  • Safe Harbour Resolution
  • Preliminary Restructuring Plan
  • Dealing with Creditors
  • The Restructuring Plan
  • Privileged Communications & Evidence of Insolvent Trading.

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Call now to speak to one of our Insolvency & Restructuring Lawyers

1300 553 343

Testimonials

After working with others, it was refreshing to have you on our side.

I would like to thank you and your team for assisting myself and Andrew with the restructure. You amazed us with your energy and knowledge, you are a champion. After working with others, it was refreshing to have you on our side. Thanks also from all our staff for assisting in securing their future.

Paul Barwick, Director

MCA Engineering


No nonsense commercial approach to getting the right result.

No nonsense commercial approach to getting the right result.

Bradd Morelli, Liquidator

Jirsch Sutherland Insolvency Solutions

Find out how and when to enter Safe Harbour.

Protect yourself from personal claims for insolvent trading while you develop and implement a Restructuring Plan.

Download our Safe Harbour Guide NOW.

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Safe Harbour Guide

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Call now to speak to one of our Insolvency & Restructuring Lawyers

1300 163 058