Type: Articles Published
First, it puts forward a reduction in the current default bankruptcy period from three years to one. Secondly, it proposes the introduction of a 'safe harbour' for directors and, finally, it proposes constraints on 'ipso facto' clauses rendering them unenforceable during a restructure. The Proposals Paper comes at a time of similar proposed reforms elsewhere, with the UK’s Insolvency Service releasing a consultation on options for reform to the UK’s corporate insolvency regime on 25 May 2016. This article gives a brief overview of the Australian Government’s recent proposed reforms. Cognisant of Australia’s federal election on 2 July 2016, practitioners are hopeful this will not impede progress of these legislative reforms.
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