Safe-harbour reforms that deliver greater protection for directors of financially-stressed companies have passed through both houses of federal parliament.
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.
Minister for small business Michael McCormack said in parliament that Australias current insolvency trading laws put too much focus on stigmatising and penalising failure.
The amendments will create a safe harbour for honest and diligent company directors from personal liability for insolvent …
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