TMA Australia supports Government’s announcement of regulatory changes
TMA Australia (TMAA) supports the announcement yesterday by Treasurer Josh Frydenberg that Government will examine further temporary measures to the insolvency and bankruptcy laws. With the ongoing challenges faced by the domestic and global economies and in particular the acute challenges faced by Victoria the TMAA continues to work with Government and in particular Federal Treasury to assist in the review and appropriateness of emergency measures to give temporary relief for directors from any personal liability for trading while insolvent. The TMAA is also advocating for fast-track restructuring and liquidation processes aimed at SMEs to be introduced plus consideration of longer term and more far reaching reforms.
“As the only member based organisation in Australia dedicated to corporate renewal and turnaround, we continue to maintain a strong voice in the debate about the appropriateness of continuing some of those regulatory changes beyond September 2020” said TMAA President, Carl Gunther.
The TMAA acknowledges and supports any move to mitigate the risk that extensions to emergency measures may have unintended consequences such as the perpetuation of zombie companies and the stranding of capital that could be otherwise deployed for new investment and the creation of jobs.