Retail businesses still face insolvency risks despite new safe harbour laws, according to an insolvency expert.
New safe harbour legislation which passed through Federal Parliament last week will be unlikely to settle the personal liability fears of current and aspiring company directors in the retail industry.
Currently awaiting royal assent, the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Bill 2017 amends the Corporations Act 2001 (Cth) and aims to protect directors acting to undertake a company restructure in response to insolvency, where it will receive a better result for stakeholders.
ASIC figures show 155 retail businesses entered external administration in the June 2017 quarter, up 14 per cent on the March 2017…
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