Modern City

Expert Guidance

Safe Harbour Laws

The Federal government has introduced the safe harbour laws to provide companies with an alternative path to liquidation or voluntary administration. The process involves a number of stages-firstly, an assessment of the company's finances must be conducted (up to date accounts are essential), secondly, an appropriately qualified adviser needs to be engaged to assess threshold issues (for example can the company meet its employee entitlement and taxation reporting obligations, third, a turnaround plan that results in a better outcome than a formal administration needs to be developed, and finally the plan must be monitored and adjusted as required. The turnaround plan must be executed within a reasonable period of time and hopefully results in long term viability.