Following on from the Productivity Commission's Report on Business Set-up, Transfer and Closure, the Australian Government has issued a Proposals Paper entitled Improving bankruptcy and insolvency laws.
The paper has identified and asked for submissions on three measures to improve Australian bankruptcy and insolvency law, namely: -
1. Reducing the bankruptcy period from three years to one year; -
2. Introducing a 'safe harbour' for directors to avoid personal liability for insolvent trading; and -
3. Making 'ipso facto' clauses unenforceable if a company is undertaking a restructure.
Please see full publication below for more information.
