Safe Harbour

The prohibition against insolvent trading (and associated compensation mechanisms) is subject to an important exception known as Safe Harbour: Corporations Act 2001 (Cth) section 588GA. 

Safe harbour legislation was designed to encourage companies in legitimate financial difficulty to undertake a restructure whilst providing protection for their directors from the risk of insolvent trading.

Safe Harbour is technically not a defence

Legitimate Safe Harbour eliminates the possibility of a director being considered liable for insolvent trading in a liquidation scenario. 

Implementing Safe Harbour

The basics for a director concerned that the company may become insolvent at some stage and they do not want to be personally liable for Insolvent Trading.

How Safe Harbour Protects

Directors who understand the risks of corporate failure may seek Safe Harbour in times of uncertainty.

The Importance of Proper Safe Harbour Advice

Directors need to get the elements of Safe Harbour right or they may be banned as a director or become liable for Insolvent Trading.

Safe Harbour Basics

What is Safe Harbour and how do you get protection against Insolvent Trading?