Based on AICD surveys, the personal liability risk in relation to insolvent trading is very important to directors in times of financial distress. Recently, the Government has moved to soften the prospect of personal liability by introducing Safe Harbour reforms. But it is all very well and good knowing that there is a Safe Harbour but how does a director navigate it?

Financial distress is not something planned for or desired. It is the exception, not the rule. To ease that angst, the Turnaround Management Association of Australia (TMA) has developed Best Practice Guidelines for both directors and advisors in relation to navigating Safe Harbour.

he guidelines are based on current best practice for workouts. They have been drawn from internationally accepted principles, Australian case law, detailed consideration of the new legislation and input from top tier accounting, investment banks and law firms.

We commend the guidelines to you. To view TMA Australia Best Practise Guildelines - see download link below.

TMA Australia Safe Harbour Guidelines