Is your company in danger of becoming insolvent?
Many consider the risk, but too many fail to raise the red flag. As I recently noted, troubled businesses that wait too long to seek financial help end up hurting the Australian economy – to the tune of $13 billion every year.
That’s why I welcome the present reform initiative by the Federal Government and the ASIC to encourage directors to seek help earlier.
The main reforms are based around the notion of creating a “safe harbour”. In this scenario, a director who engages a turnaround professional (or other advisor) to help restructure/turn around their business would be protected for a period of up to 3 months from insolvent trading issues whilst the turnaround plan is being developed and executed. That way the director can make an informed decision on the merits of continuing on without the threat of potential insolvent trading issues affecting their decision making.
To read the full, original article click on this link: Insolvency and turnaround: Is your company in danger of becoming insolvent? - Anthill Magazine
Author: Michael Fingland
