In welcome news for directors and the economy, the Federal Government has announced draft legislation for insolvency law reform that incorporates a proposal to introduce a safe harbour provision.
Piloting through the recent stormy economic weather has put pressures on numerous businesses as well as their supply chains to maximise liquidity and unleash cash. Consequently, many businesses have engaged in uncompromising cost cutting strategies and cash flow management plans to preserve surplus cash reserves.
It took close to 18 months before Australia’s first priority dispute was decided in court as a result of the Personal Property Securities Act (PPSA).
In the case in question, the owner of goods was unsuccessful in ascertaining priority over a financier who held an all assets security interest.
Pursuant to the new laws, a director’s personal liability for superannuation and PAYG withholding debts will not be absolved by initiating a formal insolvency appointment
On 30 June 2012, changes to the Director Penalty Notice Regime came into effect, causing major changes to the options available to directors to avoid personally liability for unremitted PAYG and SGC.
Charles & Co. guides companies experiencing financial and/or operational challenges. Charles & Co. is a boutique professional services firm specialising in business advisory, insolvency and restructuring.
Charles & Co. advisory group provides expertise for directors and shareholders of underperforming companies. We focus on turnarounds that preserve enterprise value.
Charles & Co. partners with all stakeholders to implement formal insolvency strategies to minimise loses / maximise returns.
At Charles & Co. we are accessible, empathetic and are prepared to go that extra mile to build trust with all stakeholders. This approach builds closer relationships with our clients allowing us to deliver outstanding outcomes.