The outbreak of COVID-19 Coronavirus will have a financial impact on businesses on a global scale. It is important that company directors continue to be aware of their duties to prevent their company from incurring debts whilst it is insolvent, or may become insolvent.
At times like this, directors need to understand their duty to prevent a company from continuing to trade whilst insolvent. With the introduction of the Safe Harbour regime, directors are able to maintain control of their company whilst developing strategies that will provide creditors with a better outcome that if that company was to be placed into external administration.
If you or your clients would like to discuss the financial implications of business interruption and the potential ramifications please contact Richard Rohrt or Stephen Dixon on (03) 8866 7600.