Directors' duties to prevent insolvent trading in a crisis: Responses to <scp>COVID</scp> ‐19 in Australia and lessons from Germany

This article considers relief from directors' duties to avoid trading whilst insolvent during the COVID-19 pandemic in Australia and Germany. Comparative insolvency law literature traditionally compares jurisdictions such as United Kingdom New Zealand. However, Germany has a track record of using manage social economic crises. The German approach suggests solutions critical issues not dealt with Australian safe harbour legislation, failure suspend other statutory provide clear guidance directors on balancing various interests, treatment potential voidable transactions new monies (i.e., funding or credit). responses both suggest change priorities away creditor protection, key raison d'être for these types duties, crisis. Similar turning obligation file formal proceedings off on, further adopted part restructuring procedure small businesses, which commenced January 1, 2021, that use harbours could become permanent crisis-management tool too, consequences balance between debtor interests.