Corporate Law Reform
19 August 2010
"We want a good, strong economy in Australia, but if we don't get this one right, so we can save viable businesses and jobs, when the next crisis comes, the economic consequences will be magnified because of the inadequacies of our legal system," argues Dr Robert Austin.
In an interview with the Law Society of NSW Journal, Dr Austin, who is the Challis Lecturer in Corporate Law at the University of Sydney, asserts that the system of voluntary administration may be in need of urgent reform.
"The GFC and its aftermath have left plenty of reasons for uneasiness.
"Directors considering a workout are likely to be nervous, during the time it takes to put together a proposal, because of the risk that it may subsequently become clear that there were, all along, reasonable grounds to suspect insolvency, with the result that they are liable, even though they were trying to save the business.
Sydney Law School will examine this topic further at the 2010 Supreme Court Corporate Law Conference - Restructuring Companies in Trouble - Director and Creditor Perspectives - which takes place on Tuesday, 24 August 2010.
Contact: Greg Sherington
Phone: +61 2 9351 0202