A Safe Harbour for Directors? Shielding against personal liability for insolvent trading

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A Safe Harbour for Directors? Shielding against personal liability for insolvent trading

The Australian Government’s Productivity Commission, tasked with independent research and advisory on various economic, social and environmental issues, has recommended amendments to the Corporations Act 2001 (Cth) (Act) which will introduce a ‘safe harbour’ for company directors facing personal liability for insolvent trading.

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Most Unfair - the Expansion of the Uncommercial Transaction

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Most Unfair - the Expansion of the Uncommercial Transaction

The liquidator of Ashala Model Agency Pty Ltd (Company) commenced recovery proceedings against Featherstone, the Company’s shadow director. Relevantly, Featherstone had paid himself using the Company account to clear a loan that he provided to the Company. Featherstone ultimately used that money to purchase a residential property for his de facto partner, who was also the main shareholder of Ashala. The monies paid to Featherstone rendered the Company insolvent.

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