Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Act 2017 (112 of 2017)

Schedule 1   Amendments

Part 1   Safe harbour for insolvent trading

Corporations Act 2001

4   After section 588W

Insert:

588WA Safe harbour - taking reasonable steps to ensure company's directors have the benefit of the directors' safe harbour

(1) Subsection 588V(1) does not apply in relation to a corporation that is the holding company of a company, and to a debt, if:

(a) the corporation takes reasonable steps to ensure that subsection 588GA(1) (about a safe harbour for directors taking certain courses of action) applies in relation to:

(i) each of the directors of the company; and

(ii) the debt; and

(b) subsection 588GA(1) does so apply in relation to each of those directors and to the debt.

(2) A corporation that wishes to rely on subsection (1) in a proceeding for, or relating to, a contravention of subsection 588V(1) bears an evidential burden in relation to that matter.

(3) In this section:

evidential burden , in relation to a matter, means the burden of adducing or pointing to evidence that suggests a reasonable possibility that the matter exists or does not exist.