This is on top of temporary rules put in place in March and extended in September for another six months, including relief for directors from any personal liability for trading while insolvent.
Those temporary rules also included a provision that made it harder to issue a statutory demand for unpaid bills. The threshold was increased from $2000 to $20,000 and debtors were given six months instead of 21 days to respond to a statutory demand. Despite concerns back in June about the growing stockpile of non-viablebusinesses, these protections were extended in September until the end of this year. That extension was a bad idea according to the head of the credit managers’ peak body and will lengthen the economic shock, while small busines…
Read the full article at: https://www.smh.com.au/business/markets/fears-over-the-growing-stockpile-of-zombie-companies-20200916-p55w6i.html
