TMA Australia: Best Practice Guidelines – Navigating Safe Harbour
Dear fellow Members of TMA Australia
Over the past two years the Commonwealth Government has promoted a review of the Australian insolvency laws. In particular, the focus has been on whether it makes sense to provide directors of stressed and distressed corporates with a “safe harbour” to work with suitably qualified turnaround professionals. This will allow directors to create a plan, without fear of incurring liability for insolvent trading. The TMA has been a strong advocate and active participant in Government’s framing of the proposed safe harbour. Legislation to give effect to this concept is now before the Parliament, which is anticipated to be passed into law in coming months.
In anticipation of the enactment of this law, your Board has crafted a set of guidelines and explanatory notes for members to assist them in navigating the introduction of these laws. With the legislation yet to pass, there is likely to be amendments to these guidelines and members should watch for updates as further insights are incorporated.
We would like to thank Board members for their work on this initiative, and it is particularly pleasing to see one of our young NextGen members taking a significant role in the drafting process and we would like to thank Kathryn Smith of Ashurst for doing so.
We commend these guidelines to you for your consideration (click on the link below) as this exciting development unfolds in coming months.
With kind regards,
Tim Stewart Lachlan Edwards
View TMA Australia’s Guidelines – here.