Safe harbour—taking reasonable steps to ensure company’s directors have the benefit of the directors’ safe harbour
(1) Subsection 588V(1) does not apply in relation to a corporation that is the holding company of a company, and to a debt, if: (a) the corporation takes reasonable steps to ensure that either subsection 588GA(1) or 588GAAA(1) (the safe harbour provision) applies in relation to: (i) each of the directors of the company; and (ii) the debt; and (b) the safe harbour provision does so apply in relation to each of those directors and to the debt. (2) 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. (3) 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.
Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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