Businesses holding assets in trusts should operate under the same laws as other corporations when they fall into financial strife to better help creditors get more of the money theyre owed and sooner, a parliamentary committee has recommended.
The committee made 28 recommendations, including accepting all the measures proposed in the 2021 review of safe harbour legislation chaired by Arnold Bloch Leibler partner Genevieve Sexton which suggested tweaks to the newly introduced laws to better protect directors who attempt to keep a company afloat in good faith.
Many trust disputes in insolvency end up in court.
In addition, the committee said a further comprehensive and independent review of Aus…
Read the full article at: https://www.afr.com/policy/economy/time-to-bust-business-trusts-insolvency-review-20230712-p5dnqf