The temporary COVID-19 safe harbour defence for directors from civil insolvent trading liability expires on the 31st of December. Ditto the temporary changes to the compliance period for statutory demand and bankruptcy notices.
But what does that mean exactly? Must the directors of an insolvent business place the company into external administration before 31/12 in order to benefit from these protections?
There are opposing views in the corporate restructuring community as to what the law says, what the law intends, and what is best for the broader business community.
Does it even matter to SME owners who are “all in” one way or the other? What about middle-market firms where professional directors have everything to lose?
Regardless, what will safe harbour look like in the 2021 - and what strategies should businesses start adopting now in preparation? How should “good companies” protecting themselves from “zombie” contagion assuming there is a “wall of insolvencies” coming? What will the role of voluntary administrator be in 2021?
Join host Nick Samios as he puts these questions to special guests Ginette Muller (Partner at Hall Chadwick) and Warren Jiear (Partner at HWL Ebsworth).