The government’s introduction of a safe harbour to protect directors from insolvent trading liability will drive a culture change expected to prevent the premature collapse of companies, according to experts.
Minister for Revenue and Financial Services Kelly O’Dwyer has rallied lawyers and turnaround professionals to back the government’s changes, saying they will be key to understanding and enforcing the new rules.
“The government believes Australia’s current insolvent trading laws put too much focus on stigmatising and penalising failure,” she told a Turnaround Management Association (TMA) conference in Melbourne on Thursday.
“In many cases laws push directors to prematurely enter a formal insolvency even where the com…
Read the full article at: http://www.afr.com/business/legal/safe-to-fail-insolvency-safe-harbours-will-rescue-struggling-companies-20170905-gybktm
