The Federal government has introduced a new set of laws to prevent directors from being prosecuted for insolvent trading so long as the ‘safe harbour’ provisions of the Corporations Act 2001 (Cth) are complied with.
Here is a link to the sections starting at s588GA
For the protections to take effect you need to:
1. Be on top of the financial position.
2. Up to date with key obligations.
3. Be working to a plan developed with someone with the appropriate qualifications.
Perhaps unhelpfully the term ‘appropriately qualified’ is not defined.
You wouldn’t let an unqualified electrician near your house so we would say don’t let someone without insolvency qualifications try and direct you to a safe harbour.
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