On 31 July 2020, the Treasurer, Josh Frydenberg, announced that the Morrison Government would extend certain features of the temporary Coronavirus response legislation for a further 6 months.
Until 21 March 2021, company directors can continue to use certain interim amendments to the Corporations Act to satisfy their legal obligations, such as the ability to hold AGMs online and execute documents electronically.
The Treasurer’s announcement however did not specify whether the provisions:
- extending the period a company has to respond to a statutory demand from 21 days to six months;
- increasing the minimum debt threshold for issuing a statutory demand on a company from $2,000 to $20,000; and
- granting directors temporary relief from personal liability for insolvent trading for debts incurred in the ordinary course of the company’s business,
would also be extended for a further 6 months.
We will provide updates on this matter as more details are released.
If you would like further information or advice on how these changes could assist your company, please contact our Corporate & Commercial Team at Hunt & Hunt.
Full details of the announcement are available here.