On 12 October 2020, the AICD lodged a submission on the Corporations Amendment (Corporate Insolvency Reforms) Bill 2020 (Exposure Draft).
The AICD has long taken the view that the primary objective of Australia’s insolvency regime should be corporate recovery. This is all the more important against the backdrop of COVID-19. The insolvency regime should encourage entrepreneurialism, preserve employment and operate to save businesses that are fundamentally viable in the long-term.
Against this background, the AICD welcomes the Government’s announcement to introduce reforms to support small business, including the simplified restructuring process. Given the technical nature of the Exposure Draft, the AICD has limited its comments in the submission to provisions that impact directors and their role in the restructuring process.
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