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ARTICLE · 08 FEBRUARY 2021

UPDATE | Changes to statutory demands from 1 January 2021

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Directors must publish a declaration on the ASIC website about company eligibility for temporary restructuring relief.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Marc Baddams
Marc Baddams
Sean Greenwood
Sean Greenwood
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Marc Baddams and Sean Greenwood provide an update following on from the recent article Changes to statutory demands from 1 January 2021 posted on 23 December 2021.

Update

The Corporations Amendment (Corporate Insolvency Reforms) Act 2020 (Cth) (the Act), commenced on 1 January 2021. The Act provides, among other things, that for a three month period from 1 January 2021 to 31 March 2021, an eligible small business will be able to declare its intention to access a new small business restructuring process (itself part of the Act) to its creditors through ASIC's published notices website.

Following such a declaration, the existing temporary insolvency relief that was place until the end of 2020 (relief from insolvent trading liability under section 588GAAA of the Corporations Act 2001 (Cth) and the restrictions on the issuing of statutory demands) would then apply to the business for a maximum period of three months (or four months if the company has obtained

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