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ARTICLE · 09 MARCH 2016

Encouraging innovation through insolvency reform

Corrs Chambers Westgarth
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These proposed changes aim to encourage entrepreneurship and remove barriers for start-ups, while protecting creditors.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Annabelle Browne
Annabelle Browne
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In January 2014 I published an article titled " Directors Duties – Insolvent Trading: Five rules to deal with a company in financial difficulty" in which I called upon the Federal government to reform Australia's harsh insolvent trading laws and bring in some protections against ipso facto clauses in order to facilitate the restructuring of businesses.

The Turnbull Government's National Innovation and Science Agenda seeks to implement changes including research, education and taxation, all with the aim of reinvigorating Australia's economy.

Fundamental to this era of economic change is support of and investment in innovation and new ideas. Investment in unproven enterprises will however be stifled without some protections.

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