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Safe harbour is a provision under the Corporations Act 2001 that protects company directors from personal liability for insolvent trading, provided they are taking proactive steps to restructure or turnaround a financially distressed business.
At Equinox Restructuring & Insolvency, we help directors access and maintain safe harbour protection by putting the right plans, documentation and oversight in place.
Safe harbour provides a legal defence for directors who continue trading while a company is insolvent or near insolvency, as long as they are:
This protection allows time and space to explore viable restructuring solutions without the fear of personal liability.
Safe harbour is ideal when:
It’s a critical risk management tool for directors acting in good faith.
Employees may be owed:
Without proper documentation and oversight, directors may not qualify for safe harbour.
Our role is to guide you through the process and give you confidence that all of your actions are within the law.
We help directors take responsible action with full awareness and protection.
If your business is in financial distress but has a future, safe harbour could give you the legal protection to pursue that future with confidence.
Click here to arrange a cost and obligation free consultation with a restructuring specialist.
No. Directors must actively meet criteria and take documented steps to enter safe harbour.
It applies to companies that are properly managing tax and employee obligations. Sole traders and partnerships are not eligible.
It continues while a genuine turnaround plan is being developed or implemented and the director remains compliant.
Yes. It often supports informal workouts, refinancing or planning ahead of a formal appointment like voluntary administration.
A clear plan, financial records, compliance evidence and ongoing monitoring. Our team will help you prepare and maintain all of this.
No. It is a private protection and not disclosed unless required in legal proceedings.