The report of the Senate Economics Legislation Committee on the Treasury Laws Amendment (2017 Enterprise Incentives No 2) Bill 2017 was tabled on Tue 8.8.2017. The Committee recommended the Bill be passed.
The Bill had previously passed the House of Reps without amendment and is before the Senate. The Bill proposes to amend the Corporations Act 2001 to create a safe harbour for company directors from personal liability for insolvent trading under s588G(2) of the Corporations Act if the company is undertaking a restructure outside formal insolvency. It would also provide for a safe harbour for holding companies. The Bill would also make certain contractual rights that amend or terminate and agreement (ipso facto clauses) unenforceable when a company is undertaking a formal restructure except in certain limited circumstances.