This report examines the concept of safe harbour under Section 588GA of the Corporations Act 2001 in Australia, specifically concerning directors' duties and insolvent trading. It analyzes the fiduciary duties of directors, the application of safe harbour defenses, and the restrictions on these defenses, particularly regarding employee entitlements and debt compliance. The report differentiates safe harbour from business judgment rules and explores the impact of voluntary insolvency. The report also includes a case study of Mr. Daly, analyzing his breaches of director's duties and the potential liabilities of other directors. The report concludes by summarizing the application of safe harbour provisions and their impact on director's responsibilities, and the importance of the director's actions to prevent the company from trading in an insolvent manner.
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