Yesterday, Treasurer Josh Frydenberg announced the introduction of US-style Chapter 11 bankruptcy rules, which would cover around 76% cent of businesses subject to insolvencies, 98% of whom have less than 20 employees:
The new system would be two-tiered, with large companies required to work under existing insolvency rules, while business with liabilities of less than $1 million would have a simpler system.
The changes would see small business owners remain in control of their company and assets, rather than immediately being placed in the hands of an administrator or creditors.
