Back in April 2016, the federal government proposed amendments to bankruptcy and corporate insolvency laws under its National Innovation and Science Agenda.
The government has sat on the proposed amendments for some time now, so it came as a bit of a surprise when a legislation Exposure Draft dealing with safe harbour positions for insolvent trading and ipso facto clauses in insolvency administrations was released last week.
Pitcher Partners has long supported the need for safe harbour provisions. Under the existing legislation, directors commit an offence when they incur debts at a time when the company is insolvent, or becomes insolvent as a result of incurring the debt and there are reasonable grounds for suspecting th…
Read the full article at: http://www.smartcompany.com.au/business-advice/legal/insolvency-safe-harbour-reforms-back-agenda-work-needed/