Insolvency law changes flagged by the Innovation Statement from the PM

The traditional approach to corporate and personal insolvency laws could change radically as a result of the Innovation Statement released by Prime Minister Malcolm Turnbull on 7 December.

Whilst the detail will be revealed in draft legislation, which we are unlikely to see for several months, the changes appear at first blush to pick up many of the recommendations in the Productivity Commission's report on Business Set-up, Transfer and Closure issued in September this year.

It may be 18 months before any changes are finally legislated, but their impact is likely to extend far beyond the technology or start-up sector. While the proposed reforms are likely targeted at removing some risk for directors of start-up companies and increasing the appetite for entrepreneurial behaviour, the changes will have a wider impact across all industry sectors.