Bankruptcy changes applauded

OCT 2010

MDW Associates director Graeme Downie has applauded changes to the Bankruptcy Act that give businesses more time to consider their financial circumstances.

Under changes to the act, the stay period for declarations of intent to file a debtor’s petition will change from seven to 21 days.

Critics argue the new timeframe is too long but Downie highlights the time is necessary to allow businesses to assess their options and initiate turnaround under the Corporations Act.

“Some stakeholders have expressed concern that an increase in the stay period to 21 days would be excessive and that such an increase may prejudice the rights and interests of creditors,” says Downie.

“But we believe putting companies hastily into administration without giving them a decent chance to turnaround serves no one’s interests – the owners, creditors, shareholders or clients.

“My partners and I believe increasing the timeframe would provide company directors with a much more realistic opportunity to properly make their assessments.”

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

From pandemic side hustle to multi-million dollar business: Meet Ling Fung
Partner Content
Ask any parent, and they’ll tell you: preparing for a new baby is no easy task.&n...
Metro Baby
Advertisement

Related Stories

Dose of caffeine for Retail Food Group shares on profit outlook

Dose of caffeine for Retail Food Group shares on profit outlook

Shares in Retail Food Group (ASX: RFG) perked up today as the Gold ...

Insurance cost for floods and storms hits $12.3 billion since January 2020

Insurance cost for floods and storms hits $12.3 billion since January 2020

With the February-March floods in Southeast QLD and NSW now classed...

King-hits keep coming for The Star as AUSTRAC launches civil enforcement action

King-hits keep coming for The Star as AUSTRAC launches civil enforcement action

The king-hits keep coming for Star Entertainment Group (ASX: SGR) w...

Is attribution software killing our creativity?

Is attribution software killing our creativity?

As digital marketing continues to evolve at rapid speeds, businesse...