Research and consider the reasons for the introduction of the safe harbour defence in s588GA and the effect of the 2018 amendments to Division 3 - Director’s duty to prevent insolvent trading. Answer the following questions.
1. Is the duty to prevent insolvent trading a fiduciary duty? Why or why not? You must give detailed reasons (10 marks)
2. How does the safe harbour defence s588GA operate? (10 marks)
3. Who does it (s588GA) protect, and is this different to the business judgment rule s180 (2)? Give reasons. (5 marks)
4. Are there any restrictions on the operation of the s588GA defence? If so, what are they? (5marks)
5. Do you think the changes to Division 3 will have an effect on the number of voluntary insolvencies in Australia in the future? Why or why not?
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