The federal Treasury is expected to fast-track new insolvency laws to encourage entrepreneurialism and keep struggling companies alive as economic growth risks slowing and interest rates remain on pause.
The new rules will give directors breathing space to take reasonable risks by providing a “safe harbour” from insolvent trading liabilities, and prevent contractors from using “ipso facto” clauses to terminate contracts with struggling businesses if they are otherwise complying with the terms.
“There are some economic headwinds, obviously the world’s getting a bit harder in terms of growth and revenue generation,” said Turnaround Management Association director Marcus Derwin.
“We want to keep the growth going and to do t…
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