In recognition of the significant economic impact of COVID-19, several jurisdictions have passed (or propose to pass) legislation to provide temporary relief for directors of businesses in financial distress, and hopefully mitigate some of the economic effects of the COVID-19 pandemic.
Relevant Act: Coronavirus Economic Response Package Omnibus Act 2020 (Cth)
Length of Grace Period: 6 months from 25 March 2020 (unless extended by legislative instrument)
The minimum debt which can form the basis for a statutory demand has been increased from AU$2,000 to AU$20,000. The period within which the debt must be paid or an application made to … Continue Reading