The Rudd Government has unveiled a plan to reform insolvency laws that will make it easier for beleaguered directors to try and rescue their companies without the threat of being sued for trading while insolvent.
Financial Services Minister Chris Bowen has announced the Government will also legislate to overturn the High Court’s controversial decision in the Sons of Gwalia case, which gave shareholders of collapsed companies the same rights as unsecured creditors.
Bowen is also concerned that the High Court decision has pushed up funding costs for businesses.
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James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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