Statement attributable to Pauline Wright, President, Law Council of Australia:
The Law Council welcomes the government’s interest in assisting small business to deal with the inevitable insolvency impacts that will be felt in the economy in the aftermath of the COVID-19 economic crisis.
The Law Council, through its Business Law Section Insolvency and Restructuring Committee, has been considering possible reforms and had already urged the government, in a submission made to Treasury as recently as 11 September 2020, to consult with industry and the profession on a range of measures including simplified processes for restructuring or liquidating businesses in distress.
However, the lack of consultation to date and the very tight time frames within which it appears the government wants to act are very concerning. It is imperative that prior to introduction of the new regime, the government take into account