The current laws arguably limit directors’ abilities to make appropriate business decisions and to take appropriate business risks for fear of being held personally liable for allowing a corporation to trade whilst insolvent, even in those situations where there is a reasonable prospect of turning the company’s operations around.
The current defences and judicial discretions do not go far enough. The fear of a breach of the current insolvency laws and corresponding personal liability can influence directors’ decisions to resign or to put the corporation into premature external administration.
The webinar examines the current penalties and damages for breach that can be imposed. In answer to these issues, the Australian Government has introduced draft legislation which will create a ‘safe harbour’ for directors which will allow them to make appropriate business decisions in times of corporate ‘restructuring outside of formal insolvency’ in certain circumstances without the fear of such personal damages and penalties being imposed.
The webinar also discusses the limitations of the reforms, and makes some suggestions for further reform which will give directors additional confidence to trade during difficult times, where there is a reasonable prospect of success.
Webinar Learning Outcomes:
Accountants, Directors of Pty Ltd and Ltd companies, Company Secretaries.
Lidia Xynas is an Associate Professor in Law in the College of Law & Justice, at Victoria University.’
Lidia is an academic with many years’ experience as a manager, senior lecturer and active researcher. She is a well-established researcher and author, with her research focus covering the areas of taxation law, corporate and commercial law, and sentencing law. Lidia has also published in the area of Teaching and Learning and has extensive experience is designing and implementing online and face to face programs in Law. Lidia is a demonstrated excellent teacher of law and the recipient of a teaching excellence award from the Australasian Law Teachers Association.
Lidia is Fellow of the Governance Institute of Australia and a voting member of both the Tax Institute of Australia and the Law Institute of Victoria and is an Australian Lawyer, admitted in the Supreme Court of Victoria.
You will be provided with:
Understand current insolvency laws and proposals for reform.