Choose advice that covers the actual turnaround problem

One adviser may not cover every problem

The company needs a turnaround and you want advice about safe harbour. Start by identifying the decisions requiring assessment. Financial records, legal obligations and technical operating problems may need different expertise. Appointing someone with a reassuring title is not the same as obtaining appropriate advice about the company's actual circumstances and the proposed course of action.

Describe the specific difficulties

Imagine a construction company facing loss-making projects, creditor demands and incomplete accounts. List the questions: which jobs can be completed economically, what records need reconciliation and what legal steps require attention. Give potential advisers a clear outline. Do not ask for a general declaration that the company is in safe harbour without a factual assessment.

Check the expertise required

ASIC's RG217 says directors should consider whether multiple appropriately qualified advisers are needed to provide accounting, legal, financial and industry-specific expertise. Ask what each adviser can address and where another specialist is required. The guidance does not mean a larger team guarantees protection; the relevant skills and advice must fit the actual work.

Source: ASIC: RG217 Duty to prevent insolvent trading

Agree the scope and information flow

Record who reviews solvency, who assesses legal requirements and who tests operational assumptions. Agree how current information and material changes reach them through appropriate channels. In the construction example, a project estimate prepared by the site team should not be treated as independently checked merely because it appears in a financial adviser's spreadsheet.

Keep directors involved

Ask for explanations of conclusions, conditions and unresolved questions. Ensure directors understand the advice before making decisions and keep a record of the information considered. Do not assume responsibility for the next commitment has been transferred merely because professional advisers are engaged. Seek clarification promptly if recommendations conflict or rely on facts that are no longer current.

Review whether the engagement remains adequate

When the business changes course or a new risk emerges, ask whether the scope and expertise still match the task. Keep urgent legal obligations under review throughout. The objective is useful, properly informed advice supporting responsible decisions, rather than collecting professional names around a plan whose underlying assumptions nobody has been asked to test.