Insolvent trading: rare judicial consideration of temporary Covid-19 safe harbour defence

Ann O’Connell of Hall & Wilcox discusses how the Queensland Supreme Court recently confirmed the temporary COVID-19 safe harbour in s 588GAAA is narrow, rejecting its use where insolvency was entrenched and imposing more than $1.4 million in compensation and interest on a sole director, while underscoring rigorous evidentiary expectations for both directors seeking protection and creditors pursuing s 588M claims.

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