An alternative to an insolvency appointment.
Are you or your clients falling behind on paying company debts?
Directors are exposed to personal liability if they trade a business unable to pay its debts when they fall due. This is called insolvent trading. Resigning as a Director does not provide relief.
What can happen to a Director for insolvent trading?
Civil financial penalties of up to $200,000. Compensation proceedings can be initiated by ASIC, a liquidator or creditors in addition to civil penalties and are potentially unlimited. This may result in personal bankruptcy which will disqualify a Director from managing a company.
Is there an alternative to an immediate insolvency appointment?
Yes. “Safe Harbour” changes to the Corporations Act can be used to stop acting prematurely to appoint a liquidator or administrator, which can be a destructive and litigious minefield.
What is Safe Harbour and who can help?
If done correctly, Safe Harbour provides Directors protection from personal liability for insolvent trading if the company is attempting to restructure.
As an appropriately qualified professional restructuring firm, Titanium Corporate Advisory can help provide an effective and protective restructure to manage the challenging financial situation without fear of a Director being personally liable.
Are public notifications or other announcements required?
No. Unlike an insolvency appointment, Safe Harbour is a confidential commercial arrangement with our firm. Directors keep control of the business.
How do the company’s accountant, tax agent, lawyer and other advisors fit in?
We partner with current advisors, working together to save the business, benefiting all by maintaining relationships with businesses which might otherwise have been forced to close.
How can Titanium Corporate Advisory help?
Titanium are qualified restructuring accountants with over 30 years specialist experience providing restructuring, insolvency and workout solutions.
Lead by Mark Levi, we pride ourselves in proactively helping clients through turbulent and challenging times.
Contact us to arrange a confidential obligation free consultation with a qualified restructuring professional.