In September 2017, ‘safe harbour’ reforms to insolvency law were introduced to encourage directors to engage in a course of action early that is reasonably likely to achieve better outcomes for companies than immediate administration or liquidation. However, the existence of a safe harbour may not be enough if shareholders are locked into an intractable dispute.

Over a nine month period to July 2018, amendments to the Corporations Act come into force which significantly limit the ability of corporate parties to rely on an ‘insolvency event’ to modify or terminate their contracts entered into after that date.