Research Essay 2000 words
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To better support early restructures, consideration should also be given to the role and responsibilities of company directors during restructuring and the incentives these create. In particular, the Commission recommends the introduction of a ‘safe harbour’ defence for directors of solvent but struggling companies, such that they would be able to undertake formal restructuring activities without liability for insolvent trading while the defence is active.
†Australian Government Productivity Commission Inquiry Report No. 75, 30 September 2015: ‘Business Set-up, Transfer and Closure’, p 25 (‘Overview’) (available at http://www.pc.gov.au/inquiries/completed/business/report)
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