Date posted: 08/10/2021

Submission on Review of the insolvent trading safe harbour

Joint submission supports the safe harbour provision. We propose changes so our members, directors, can use with confidence.

Safe harbour can provide a director of a corporation protection from personal liability where they put into place a rescue plan for the business which may require the business to continue trading while insolvent. Safe harbour only applies where the director has determined that the plan is likely to achieve a better outcome for all parties than placing the business into external administration.

Our joint submission supports retention of the provision, proposes options to capture data on usage and recommends making aspects of the provision more prescriptive. 

We thank our members for their contributions to this joint submission.

Helping clients with companies in financial distress in Australia.

Guidance for accounting practices in Australia dealing with clients in current or potential financial distress.

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