From hlb.com.au: Company boards must assess the rigor of their corporate governance frameworks in light of rising insolvencies, as failures in governance can lead to significant personal liability for directors.

Directors face risks such as insolvent trading, breach of fiduciary duties, and regulatory breaches, underscoring the necessity for proactive management and adherence to legal responsibilities.

The safe harbour regime provides protection for directors while they explore restructuring options, allowing for transparent discussions and avoiding immediate insolvency measures.