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.
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