Currently awaiting royal assent, the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Bill 2017 amends the Corporations Act 2001 and aims to protect directors acting to undertake a company restructure in response to insolvency, where it will receive a better result for stakeholders.
ASIC figures show 227 accommodation and food services businesses entered external administration in the June 2017 quarter, up 35.9 per cent on the March 2017 quarter.
Rigby Cooke Lawyers partner Demian Walton said the ambiguity of language contained in the new law and the reliance on judges to interpret it will do little to reassure company directors of its protection.
The legislation fails to give directors specific steps they can…
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