Submission to Treasury on Regulatory Framework for Insolvency Practitioners in Australia
- Date:29 Jul 2011
- Type:Policy Submission
The Australian Institute of Company Directors provided comments to Treasury in response to the
Options Paper: A Modernisation and Harmonisation of the Regulatory Framework Applying to Insolvency Practitioners. Our submission agreed that efforts should be taken to reduce the incidence of fraudulent phoenix activity but noted that there were issues with the proposals to streamline the director disqualification process.
The submission stated that there was no case for automatically disqualifying directors on the basis of company failure alone and recommended that ASIC not be vested with any additional power to disqualify directors beyond that which it already possesses under section 206F of the Corporations Act.
The Australian Institute of Company Directors also recommended the adoption of a business judgment rule defence for insolvent trading and stated that without such a defence, the regulatory regime would not be effective in saving businesses that can be saved.
Download our Submission to Treasury on the Regulatory Framework Applying to Insolvency Practitioners in Australia (PDF 1MB)