We wrote an important article here updating directors on the insolvency safe harbour provisions and managing the risk of personal liability.
As contemplated by that article, the Treasurer and Attorney General have announced this morning (7th September 2020) that the Federal Government will extend the temporary relief for directors from personal liability for trading while insolvent until 31 December 2020. Bearing this in mind, directors should consider if the extension impacts them or how their board makes decisions and seek appropriate advice to formulate a plan of action if necessary.
This update is not legal advice. It is intended to provide general information only. Please contact us if you require advice on matters covered by this update.
Photo – Andrew Windybank, Steadfast, French Pass, NZ.