Small and medium businesses (SMBs) that are facing insolvency shouldnt be subject to the same rules as other businesses, the Law Council of Australia said.
The peak body of Australias legal profession said that Australia should move away from a one-size-fits-all approach under the Corporations Act of 2001.
The Law Council said it was supporting Treasurys draft exposure bill, which provides an alternative regime that allow SMBs to restructure, or transition to liquidation in a more cost-effective way.
In the groups own submission to Treasury on the Corporations Amendment (Corporate Insolvency Reforms) Bill 2020 and its explanatory memorandum, Law Council president Pauline Wright said the current economic circumstances facing SMBs are jus…
Read the full article at: https://www.crn.com.au/news/smbs-shouldnt-be-under-the-same-insolvency-laws-lawyer-group-554910
