Safe harbour—taking reasonable steps to ensure company’s directors have the benefit of the directors’ safe harbour
588WA Safe harbour—taking reasonable steps to ensure company’s directors have the benefit of the directors’ safe harbour
Subsection 588V(1) does not apply in relation to a corporation that is the holding company of a company, and to a debt, if:
the corporation takes reasonable steps to ensure that either subsection 588GA(1) or 588GAAA(1) (the safe harbour provision) applies in relation to:
each of the directors of the company; and
the debt; and
the safe harbour provision does so apply in relation to each of those directors and to the debt.
A corporation that wishes to rely on subsection (1) in a proceeding for, or relating to, a contravention of subsection 588V(1) bears an evidential burden in relation to that matter.
In this section:
evidential burden, in relation to a matter, means the burden of adducing or pointing to evidence that suggests a reasonable possibility that the matter exists or does not exist.
This Act’s bill:Explanatory memorandumSecond reading speech
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