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ARTICLE · 23 MAY 2017

Safe harbour: Getting past the Harbour Master for protection from insolvent trading laws?

KordaMentha
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As currently drafted, there are many difficulties when determining if a person is eligible for safe harbour protection.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Robert Hutson
Robert Hutson
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The Federal Government's recent Exposure Draft of legislation designed to provide a safe harbour from insolvent trading laws needs rework to address the practical and legal challenges of accessing safe harbour.

The Federal Government's recent Exposure Draft of legislation designed to provide a safe harbour from insolvent trading laws has generated significant commentary regarding the practical and legal challenges of staying within the safe harbour.

However, there has been less commentary on the proposed gatekeeper subsection, Section 588GA(4), which excludes a person from access to the safe harbour provisions. This subsection provides that the safe harbour protection provided by:

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