It’s still too early to declare if a cultural change amongst company directors has emerged from the safe harbour reform. What is becoming prevalent though is a ‘re-alignment of interests,’ as directors see themselves less distracted by personal exposure in hard times, enabling them to focus their attention on remediation measures.
When Parliament finally gave a green light to wide-raging reforms to Australia’s insolvency laws in September 2017, a paradigm shift for directors was in sight. It has been widely agreed that, for directors and creditor’s alike, Australia’s insolvent regime had been failing.
