New dangers in safe harbour rules – Clayton Utz

By Karen O’Flynn.

Key Points:
You can lead a director to the safe harbour, but you can’t make him drink.

The Government’s new approach to insolvency is long on rhetoric about risk taking and the need to remove the stigma of business failure.

However, it is short on detailed consideration of exactly why we have legal rules for corporate and personal insolvency.

Those rules aim to balance the interests of creditors against the need to encourage business start-ups.

There is no objective evidence that the current system is slanted too heavily against …

Read the full article at: http://www.claytonutz.com/publications/news/201512/14/new_dangers_in_safe_harbour_rules.page