ASIC has released Consultation Paper 372 Guidance on insolvent trading safe harbour provisions: Update to RG 217 seeking feedback on our proposed updates to Regulatory Guide 217 Duty to prevent insolvent trading: Guide for directors (RG 217).
CP 372 is seeking feedback on ASIC’s proposed approach to:
updating existing guidance to include information about when a holding company may be liable for debts incurred by a subsidiary when the subsidiary has continued to trade while insolvent,
providing information and general guidance about the operation of the safe harbour provisions and the factors ASIC will consider when assessing whether safe harbour protection is available to a director, and
providing guidance for directors about the key principles they should consider in carrying out their duty to prevent insolvent trading.
ASIC encourages comments from industry and other interested stakeholders on its proposed approach to Regulatory Guide 217 Duty to prevent insolvent trading: Guide for directors. Comments should be sent by 5:00pm AEST on Wednesday, 26 October 2023.
