SMBs Shouldn't Be Under the Same Insolvency Laws

Small and medium businesses (SMBs) that are facing insolvency shouldn’t be subject to the same rules as other businesses, the Law Council of Australia said. The peak body of Australia’s legal profession said that Australia should move away from a one-size-fits-all approach under the Corporations Act of 2001, CRN reported. The Law Council said it was supporting Treasury’s draft exposure bill, which provides an alternative regime that allow SMBs to restructure, or transition to liquidation in a more cost-effective way. In the group’s own submission to Treasury on the Corporations Amendment (Corporate Insolvency Reforms) Bill 2020 and its explanatory memorandum, Law Council president Pauline Wright said the current economic circumstances facing SMBs are “just cause” for the reforms to be fast-tracked. Read more