Corporate Law. 1
CORPORATE SOCIAL LAW.
By [Name]
Course.
Professor’s Name.
Institution.
Location of Institution.
Date.
, Corporate Law. 2
PART A
Introduction
The Corporations Act 2001(Cth) of Australia imposes a duty on directors to enable them
to prevent the company to incur debts. When the organization or company management has the
evidence to suspect that the company may eventually become insolvent. One of the Australian
law considers the company to have become insolvent when it has reached the position that it is
unable to pay its debts. The insolvency laws in Australia has undergone most of the
comprehensive reviews and reforms for the past decades. The reforms are aimed to enhance the
culture of restructuring the policies of insolvency that imposes severe fines on the directors who
breaks the regulations of trading the companies while it is insolvent (Gilligan and Bird 2015, p.
114). In my researching for the reasons for the introduction for the safe harbour defence, the
following questions can be answered.
Law
Question 1.
The Australian Government is reforming insolvency laws. The insolvent law has put
much weight on the stigmatizing and penalizing for the failure. The main aims of these reforms
are to enhance the culture of creativity, innovation and entrepreneurship which has primary goals
of promoting local jobs, business growth and global success (Williams 2015, p. 55). Various
issues including the threat of Australian insolvent trading laws and the uncertainty of the precise
moment of the company will become insolvent have been criticized as the driving factors that
make the company directors seek voluntary administrations even when in situations that the
company may still be viable in the longer term. Concerns have been raised involving the
CORPORATE SOCIAL LAW.
By [Name]
Course.
Professor’s Name.
Institution.
Location of Institution.
Date.
, Corporate Law. 2
PART A
Introduction
The Corporations Act 2001(Cth) of Australia imposes a duty on directors to enable them
to prevent the company to incur debts. When the organization or company management has the
evidence to suspect that the company may eventually become insolvent. One of the Australian
law considers the company to have become insolvent when it has reached the position that it is
unable to pay its debts. The insolvency laws in Australia has undergone most of the
comprehensive reviews and reforms for the past decades. The reforms are aimed to enhance the
culture of restructuring the policies of insolvency that imposes severe fines on the directors who
breaks the regulations of trading the companies while it is insolvent (Gilligan and Bird 2015, p.
114). In my researching for the reasons for the introduction for the safe harbour defence, the
following questions can be answered.
Law
Question 1.
The Australian Government is reforming insolvency laws. The insolvent law has put
much weight on the stigmatizing and penalizing for the failure. The main aims of these reforms
are to enhance the culture of creativity, innovation and entrepreneurship which has primary goals
of promoting local jobs, business growth and global success (Williams 2015, p. 55). Various
issues including the threat of Australian insolvent trading laws and the uncertainty of the precise
moment of the company will become insolvent have been criticized as the driving factors that
make the company directors seek voluntary administrations even when in situations that the
company may still be viable in the longer term. Concerns have been raised involving the
