Australia is Adopting a Rescue Culture
- Australia has seen significant and long overdue positive legislative changes in 2017 and 2018 intended to encourage a business’ survival rather than costly, and often unnecessary, insolvency appointments.
- Launched in December 2015, the National Innovation and Science Agenda seeks to update Australia’s insolvency laws and encourage more Australian businesses to implement corrective measures when faced with financial uncertainty and try to turn their business around rather than immediately placing their business into voluntary administration or liquidation.
- There is always a period where it is difficult to establish whether a company is trading solvently or insolvently. This is often referred to as the ‘twilight zone’ and the problem arises as the precise date of insolvency is often only clear in hindsight….