“I talked to Treasury or Frydenberg’s office a few times and I strongly encouraged them to remove the trading while insolvent laws.
“I know that there are a number of directors of quite large companies in Australia that would have put their companies into administration because of those rules and only because of those rules.”
Trading while insolvent rules mean that a director can be held personally liable if a company incurs a new debt while it is already unable to meet current debts. They can also be charged with criminal offences over the breach.
In March, Frydenberg followed the advice of the industry and the business community and introduced a suite of measures to safeguard companies and directors (and the economy) from a wave of …
Read the full article at: https://www.smh.com.au/business/banking-and-finance/cut-the-korda-push-to-reshape-insolvency-laws-post-pandemic-20201222-p56pk1.html