From sladen.com.au: On December 6, 2024, ASIC updated its Regulatory Guide 217, which advises directors on preventing insolvent trading by actively monitoring a company’s financial position, investigating potential financial difficulties, and obtaining professional advice when necessary.

The guide outlines four key principles: active solvency monitoring, investigating financial issues, timely advice-seeking, and prompt action to prevent insolvency.

Directors can seek safe harbour protection by developing courses of action likely to yield better outcomes than immediate insolvency proceedings, provided they meet specific criteria.