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Insolvent Trading, Charitable Companies and COVID-19

Rosemary Teele Langford

Company and Securities Law Journal2020article
ABDC A
Weight
0.26

Abstract

The unprecedented crisis caused by the outbreak and rapid spread of COVID-19 has raised challenges for directors as concerns insolvent trading laws. The Federal Government recently announced temporary suspension of insolvent trading laws in order to ease the pressure on directors to enter their companies into administration out of personal liability concerns. The temporary relief will be available in relation to a debt incurred by the company if: (1) the debt is incurred in the ordinary course of the company’s business; (2) the debt is incurred during the six month period commencing 24 March 2020 (or a longer period prescribed by the regulations); and (3) the debt is incurred before any appointment of an administrator or liquidator of the company. A director wishing to rely on this temporary safe harbour bears the evidential burden. Temporary safe harbour relief is also provided for holding companies as concerns insolvent trading by subsidiaries.

Cite this paper

@article{rosemary2020,
  title        = {{Insolvent Trading, Charitable Companies and COVID-19}},
  author       = {Rosemary Teele Langford},
  journal      = {Company and Securities Law Journal},
  year         = {2020},
}

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Insolvent Trading, Charitable Companies and COVID-19

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Evidence weight

0.26

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.00 × 0.4 = 0.00
M · momentum0.20 × 0.15 = 0.03
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.