Welcome to In Touch, our revamped national newsletter with respect to developments in Insolvency and reconstruction. It is our aim for In Touch to be an interactive and useful resource for our valued clients.
The Australian economy in certain areas is still feeling the effects of the slow down in the resources sector and transition to innovation/services driven economy.
We are seeing developments in insolvency policy to tackle these challenges head on.
In this edition of Hall Chadwick In Touch we critically analyse the proposals of the Productivity Commission with respect to:
The “safe harbour” from lability for Insolvency trading
The termination of Ipso Facto Clauses
Reduction of standard bankruptcy period from three years to one year
It is probably fair to say that Insolvency law and policy has not had such a position of prominence in the economic conversation since the introduction of the voluntary administration provisions in Part 5.3A of the Corporations Act over 20 years ago.
In the event these proposals (or some modifications thereof) make it into legislation in the coming months, we will watch with interest whether they have the anticipated economic dividend.