Today, Federal Parliament passed new legislation which provides some protection for directors of companies in a difficult financial position.

The new legislation can give a so-called “safe harbour” from insolvent trading liability in some circumstances, provided the directors take certain action.  The intent of the new laws is to allow informal restructuring without destruction of value by any formal external administration of a company.

Your team at Blackwall Legal have a wealth of experience in dealing with companies and directors in this position.

Blackwall Partner, Chris Pearce,  sits on the WA board of the Turnaround Management Association, which has published some best-practice guidelines to assist company directors to navigate the safe harbour requirements, which are available for download from TMA’s website.

Those requirements are not simple, and if you would like to discuss a difficult scenario, our team are here to assist.