The federal government has introduced draft insolvency reforms designed to offer more protection for company directors and make it easier to restructure faltering businesses.
The draft legislation creates a safe harbour from personal liability for company directors and institutes a stay on ipso facto clauses during a formal insolvency process.
Revenue and Financial Services Minister Kelly ODwyer said the proposed safe harbour would apply to directors of companies undertaking a restructure, and would protect them from personal liability for insolvent trading in certain circumstances.
This will drive cultural change amongst company directors and encourage them to engage early with a plan for business rescue, to keep control of the company whi…
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