The AICD has provided comment to the Australian Government in response to its paper Improving bankruptcy and insolvency laws.
We recognise that a well-functioning insolvency regime that supports innovation is integral to the nation’s long-term interests.
Proposed changes to insolvency laws will begin a transformation of the Australian economy by allowing companies and directors to take the necessary risks to innovate. The potential of these changes – subject to getting the legislation right – cannot be underestimated. They will save rather than destroy billions in wealth and tens of thousands of jobs. Directors of an ailing company should be given a fair opportunity to take reasonable steps to turnaround viable businesses for the benefit of all.
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