Coronavirus Economic Response Package Omnibus Act 2020 (22 of 2020)

Schedule 12   Temporary relief for financially distressed individuals and businesses

Part 3   Temporary relief for directors from duty to prevent insolvent trading

Corporations Act 2001

34   Subsection 588WA(1)

Repeal the subsection, substitute:

(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 either subsection 588GA(1) or 588GAAA(1) (the safe harbour provision ) applies in relation to:

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

(ii) the debt; and

(b) the safe harbour provision does so apply in relation to each of those directors and to the debt.