The announcement this week about reforms to Australia’s insolvency laws is a major win for the economy and directors; the proposals announced are a positive first step in achieving a much needed overhaul of Australia’s outdated director liability framework.
It begins a transformation of the Australian economy by allowing companies and directors to take necessary risks to innovate. The Australian Institute of Company Directors (AICD) have recognised that Australian companies need to embrace the risk of failure in order to allow innovation to succeed, and therefore recognising that in pursuing new ideas and opportunities some businesses will fail.
The reforms will help change our business culture.
As part of this week’s Innovation Statement, proposals announced by the Federal Government included:
The AICD hope that Monday’s statement will be a game changer; the changes will allow large numbers of viable Australian companies to trade through difficult times. They will save rather than destroy billions in wealth and tens of thousands of jobs.
While the Innovation Statement included 28 initiatives, the following are of particular interest:
Full details of the Government’s Innovation Statement can be viewed here.
Edited from an announcement from the Australian Institute of Company Directors.