Federal Parliament Introduces New Insolvency Laws
The government introduced new Safe Harbour laws through the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Bill 2017 late last year.
What will this mean for you?
The Safe Harbour acts as a safeguard when a company restructures outside a formal insolvency. Subject to meeting the requirements for Safe Harbour, it gives company directors protection from the personal liability for insolvent trading. This is also applicable if the company has accumulated debts notwithstanding you implemented the Safe Harbour restructuring plan but it failed.
The legislation provides an incentive for directors to develop one or more courses of action that may attain a more favourable outcome for the company, as opposed to immediately liquidating or entering into administration.
If you would like to learn more about corporate insolvency and your business debt solutions, please speak to ISA for free and confidential advice on our 24/7 toll-free hotline on 1800 003 883.