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1. Development of a Strategic Course of Action:

Directors must devise a course of action that, at the time, is reasonably likely to lead to a better outcome than an immediate external administration. This plan should be viable within a reasonable timeframe.

2. Financial Obligations:

To qualify for Safe Harbour, directors must ensure that employee entitlements, including superannuation, are paid on time. Additionally, the company must be current with its tax reporting obligations.

Conditions for Safe Harbour Protection

Safe Harbour provisions shield directors from personal liability for certain debts incurred while trading insolvent, provided they take decisive action upon suspecting insolvency. This protection hinges on directors initiating a course of action reasonably likely to yield a better outcome for the company.

Safe Harbour Protection for Directors: An Overview

1. Purpose of Appointment:

Safe Harbour necessitates the appointment of an appropriately qualified entity or entities. "Appropriately qualified" refers to entities fit for executing Safe Harbour elements, potentially involving more than one advisor.

2. Our Expertise:

We, as experts in these engagements, boast significant experience spanning various industry sectors. Our proficiency extends to acting as the Appropriately Qualified Entity, conducting Better Outcome Test analyses, and providing comprehensive advice on Safe Harbour matters.

Appointment of Appropriately Qualified Entity

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Safe Harbour

Safe Harbour provisions ensure that directors will not be held personally liable for specific debts incurred while trading during insolvency.

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