Start-ups that are most in need of government safe harbour laws to protect directors of struggling companies from bankruptcy liabilities, are failing to take up the option, locked out thanks to high advisory costs and tax debts.
The laws, which were introduced almost a year ago, are designed to protect directors of a company from being personally liable for insolvent trading and was partly based on the US Chapter 11 bankruptcy provisions.
Head of commercial disputes and partner at legal firm Bartier Perry Gavin Stuart told The Australian Financial Review the intent of the laws have always been welcomed, but in practice small companies were finding the safe harbour too hard to access.
“The reality is that we’re seeing a prett…
Read the full article at: https://www.afr.com/technology/a-pretty-empty-harbour-startups-not-accessing-director-safe-harbour-bankruptcy-laws-20180831-h14s2z