Talking Law

Talking Law

[EP 102] COVID Safe Harbour Rules (for directors) and Statutory Demand changes explained

April 29, 2020

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It is no news that the coronavirus outbreak is impacting every aspect of our lives all over the world. Countries have to decide how to respond to closing businesses and unemployment on top of the health crises. As part of the effort to minimise the damage, the Australian Government has announced some significant changes to the current Insolvency laws. Find out as we explain the COVID Safe Harbour provisions and statutory demand changes in this episode - to understand how they might impact the directors of your business, and your relationship with businesses that owe you money.

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Episode Highlights:

* A quick background on the 2017 safe harbour provisions
* COVID-19 safe harbour changes
* Tips that can help you out when you are grappling with solvency issues and risks
* Changes in the insolvency laws
* A background on Statutory Demands
* Final takeaways

To help keep businesses in business throughout the COVID 19 pandemic, the Federal Government has put in place a significant number of temporary measures. In this episode, we talk to Jo Wright from our very own Aspect Legal, to explain the COVID Safe Harbour provisions and statutory demand changes. 
Jo Wright along with our host Joanna Oakey discuss the temporary changes made by the Australian Government to statutory demands, and the Safe Harbour defence for directors. This includes an increased threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive. This episode touches on the old safe harbour provisions and explains the recent changes made. We also share the best tips that can help you out when you are grappling with solvency issues and risks.

Transcript below!
Note: This has been automatically transcribed so will be full of errors! We are not providing it to you as a word-perfect version of the podcast but just as an easy way to provide you with a different way to be able to see or scan what kind of information that might be relevant to you if you are the kind of person that likes a transcript.

Joanna: Hi, it’s Joanna Oakey here and welcome back to Talking Law, a podcast proudly brought to you by a commercial legal practice Aspect Legal. Now today we’re talking about the very topical area of the COVID safe harbor provisions that have come into play in recent weeks in response to some of the real risks of insolvency that have read their head due to the COVID nightmare that we’re currently working through. So in this episode, we’re analyzing the Safe Harbor provisions, we’re really getting into detail to discuss how the Safe Harbor provisions work and what they mean for directors what personal liability means for a director where that it can stem from in relation to directors duties and where this COVID safe harbor can...