Tough insolvency rules could be relaxed, according to a federal minister, as the government looks to reduce the number of businesses pushed prematurely into insolvency.
Speaking to a recent industry conference, financial services minister Kelly ODwyer said the onus should be on supporting businesses to survive and grow, not on penalising difficulties.
The government believes Australias current insolvent trading laws put too much focus on stigmatising and penalising failure, Ms ODwyer said.
In many cases laws push directors to prematurely enter a formal insolvency even where the company may be viable in the longer term.
With that in mind, the governments proposed safe harbour will support directors to restructure the business and continue op…
Read the full article at: https://www.mybusiness.com.au/growth/3360-insolvency-reprieve-on-the-cards-for-business-leaders
