The Productivity Commission has handed down its long-awaited report on Business Set-Up, Transfer and Closure (Report) to the Australian Federal Government. Key recommendations from the Report have been embraced by the Australian Government including a 'safe harbour' from personal liability for insolvent trading for directors and making 'ipso facto' clauses unenforceable whilst a company is undertaking a restructure.
The Australian Government has included these reforms to Australia's insolvency laws with a desire to build a stronger entrepreneurial culture with these measures considered to support calculated risk taking and encourage innovation.
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