How Do The Changes To Insolvency Laws Affect My Business?

COVID-19 has been a very difficult time to keep many businesses afloat. If you are currently running a business, you have likely had to quickly adapt to maintain your cash flow. To assist businesses throughout this time, the Federal Government introduced changes to insolvency laws as of 25 March 2020, for a six month period. However, this period may be extended. The Government made these changes to offer temporary relief to directors of companies. This article will explain what those changes are and how they may affect your business.

Changes to Insolvency Laws Summary

1. personal liability of directors for any company debts which are acquired while the company is insolvent has been suspended for six months from 25 March 2020;