Stakeholders in the Hospitality and other industries may be crippled by the effects of steps to prevent the spread of the coronavirus including by voluntary social distancing.
Directors have personal liability for a number of business related obligations, making the decision to trade on through uncertain times a tough call.
If you are finding it difficult to pay staff and normal fixed expenses or are concerned about the ability of your company to continue to trade through this unprecedented period, you may have options available to you. Getting advice early may make all of the difference, and in some circumstances can reduce the likelihood of director liability.
Under the Corporations Act 2001 there are mechanisms available to companies that are experiencing financial difficulties to restructure and take steps to be able to continue to trade. These include entering into voluntary administration which can allow a corporation to try and trade out of its difficulties whilst placing a moratorium on creditors’ rights of recovering debts owed.
We are experienced in all insolvency related matters and have the expertise to assist you in these difficult times.
If you require assistance please contact our friendly staff and Justin Mathews Partner with our firm and a Queensland Law Society Accredited Specialist in Commercial Litigation at Justinm@qbmlaw.com.au or 075740111.