Harbour Masters - safe harbour & restructuring blog

Welcome to Harbour Masters, where we offer insights and updates on the expertise and guidance available for the Directors of companies in need of advice in the face of stiff trade winds. Our updates focus on the critical business topics of restructuring, turnaround, and the availability of the new 'Safe Harbour' provisions, all designed to help companies renew, restructure, and rebuild. 

Read more About Us,

Follow us on Twitter @Harbour_Masters, and

Subscribe to receive regular updates in your email inbox -->

 

 

Update: Bill passes

12-Sep-2017 15:34:00 / by James Koutsoukos

The Treasury Laws Amendment (2017 Incentives No 2) Bill 2017 has earlier today passed both houses.

The bill amends the Corporations Act 2001 to create a safe harbour for company directors from personal liability for insolvent trading if the company is undertaking a restructure outside formal insolvency.

From enactment, being today, these laws can provide Directors with a defence to a claim for insolvent trading from a subsequently appointed liquidator where the directors access safe harbour provisions whilst undertaking a restructure.

Does my company qualify?

As a reminder, to be able to enter the safe harbour period, companies and their boards need to:

  • have an actual suspicion of insolvency and be able to prove the basis of this suspicion. Directors cannot apply the safe harbour retrospectively. It can only be exercised upon execution of the restructure plan.
  • have a plan that is “reasonably likely” to achieve a better outcome for the company than an immediate appointment of a voluntary administrator or liquidator.
  • ensure that all entitlements to employees are up to date and paid when they fall due.
  • ensure all statutory lodgements are up to date.

Topics: legislation, Safe Harbour

James Koutsoukos

Written by James Koutsoukos

James is a registered and official liquidator and principal of BRI Ferrier with over 11 years' experience working in distressed financial management. James provides services in company insolvency, business recovery, business advisory and forensics. James also specialises in assisting clients with financial difficulties.