WGC Lawyers in Cairns offers practical legal guidance on safe harbour provisions that protect directors from liability during periods of financial distress. Introduced under the Corporations Act, these provisions provide a framework for directors to continue trading while pursuing a genuine restructuring. When implemented correctly, safe harbour can prevent premature insolvency filings and give businesses time to recover. Engaging a lawyer in Cairns ensures that directors meet eligibility criteria and take appropriate steps to maintain protection.
Legal Requirements and Conditions
To access safe harbour protection, directors must demonstrate that they are developing or implementing a course of action that is reasonably likely to lead to a better outcome than administration or liquidation. This requires meeting employee entitlements and tax obligations, keeping proper records and seeking advice from qualified professionals. Employment lawyers in Cairns can assist in assessing business obligations and identifying compliance risks. WGC Lawyers helps directors document and justify their recovery plans to align with legal expectations.
Documenting and Demonstrating Compliance
Accurate documentation is essential when relying on safe harbour provisions. Directors must record steps taken to develop a viable recovery plan and show ongoing efforts to achieve financial stability. This includes maintaining up-to-date financial records, board meeting notes and advice received from professionals.
Managing Workforce Implications
Financial challenges often impact staffing decisions. Employment lawyers in Cairns can advise on employment law issues during restructuring, including redundancy processes, variations to employment contracts and communication obligations. This helps businesses make informed decisions that meet legal standards and support employee wellbeing, reducing the risk of further complications or disputes during the recovery process.
Long-Term Planning and Risk Mitigation
Safe harbour is not a long-term solution but part of a broader strategy to restore financial health. Legal support during and after the process can guide decisions on refinancing, asset sales and business restructuring. Our lawyers in Cairns provide ongoing advice to help businesses address underlying issues and build resilience against future downturns.
Navigate Insolvency with Confidence
Protect your business and leadership with tailored advice. Call WGC Lawyers in Cairns on 07 4046 1111 or visit our contact page to speak with a workplace lawyer in Cairns who can guide you through safe harbour protections and recovery strategies.