Insolvent Trading Safe Harbour
1 October 2021
Key points: • The eligibility requirements to trigger the safe harbour protections are too onerous and should be amended • Use of the safe harbour should be made more cost effective • The safe harbour regime would be improved by reducing complexity and providing more certainty in interpretation • The safe harbour regime should provide for better incentives for the involvement of professional advisers • Provide for advice to be obtained from a registered liquidator to ensure that it is appropriate • Increase awareness of the safe harbour regime • Any changes to the disclosure requirements for safe harbour should recognise that disclosure of the safe harbour restructuring plan is not appropriate in all circumstances • Consider shifting the burden of proof to establish safe harbour defences to insolvent trading
Download PDFImproving Schemes of Arrangement
22 September 2021
The ABA suggests that in finalising the proposal an updated analysis of the existing Scheme regime would be of benefit to consider current market practices which may have evolved since the Productivity Commission’s 2015 report ‘Business Set-up, Transfer and Closure’.
Download PDFThe bankruptcy system and the impacts of coronavirus
21 February 2021
The current economic circumstances have not changed the views that we expressed in response to the proposal to shorten the default period for bankruptcy that was contained in the Bankruptcy Amendment (Enterprise Incentives) Bill 2017.
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