how safe is the safe harbour?

REFORM

The decision by the Turnbull Government to embark upon the most significant reform to Australia’s insolvency laws for over 20 years has been embraced by many.

One of the key features of the government’s ‘Improving bankruptcy and insolvency laws’ proposals paper is the introduction of a so-called insolvent trading ‘safe harbour’. 

Under the current insolvent trading regime, directors may be personally liable for all debts incurred by the company while the company is insolvent. Directors may also incur criminal liability for such insolvent…

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