The Problem Of Australia Insolvency Law

1928 Words Sep 24th, 2016 8 Pages
In fact, Australia insolvency law is known as one of the best insolvency law in western country. It provide a stable and fair circumstance for economy growth. The complete set of organizational structure make sure that the procedures are functional correct. The effective supervisory mechanism and detail rules can protect the legal interest of creditors. The creative voluntary administration provide precious opportunities for insolvent company to restart their business. However, recently, the insolvent trading law are cited as a reason why investors refuse to get involved in a startup. The negative impact of insolvent trading laws are regarded as the stumbling block of innovation and ambition. This article analyses the statement critically basis on historical data and cases. After discussing the necessity of the reform, the author provides some detail solution for the issue and give some comment on other people’ suggested reform.

In order to analyses the statement that “our current insolvency laws put too much focus on penalizing and stigmatizing the failures,” the purpose of insolvency laws and the situation of the laws should be acknowledged first.
Research conducted in The Early History of Bankruptcy Law (Levinthal, 1918) expresses that “In Ireland there was a practice of 'fasting on ', in which the creditor would stay at the debtor 's doorway to compel payment. The logic was that other members of the society would not allow the debtor to let the…

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