Journal article

Directors' duties to prevent insolvent trading in a crisis: Responses to COVID-19 in Australia and lessons from Germany

Stacey Steele

INTERNATIONAL INSOLVENCY REVIEW | WILEY | Published : 2021

Abstract

This article considers relief from directors' duties to avoid trading whilst insolvent during the COVID-19 pandemic in Australia and Germany. Comparative insolvency law literature traditionally compares Australia to jurisdictions such as the United Kingdom and New Zealand. However, Germany has a track record of using insolvency law to manage social and economic crises. The German approach suggests solutions to critical issues not dealt with in the Australian safe harbour legislation, such as the failure to suspend other statutory duties to provide clear guidance to directors on the balancing of various interests, and the treatment of potential voidable transactions and new monies (i.e., new ..

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University of Melbourne Researchers