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Assignment topic
"More often than not, entrepreneurs will fail several times before they make it and will usually learn a lot in the process. To help these entrepreneurs to succeed will require a cultural shift. We need to encourage Australians to take a risk, leave behind the fear of failure and be more innovative and ambitious. Concerns over inadvertent breaches of insolvent trading laws are frequently cited as reason early stage (angel) investors are reluctant to get involved in a startup. Our current insolvency laws put too much focus on penalising and stigmatising the failures..."
Australian Government, The National Innovation and Science Agenda, https://www.innovation.gov.au/
In relation to the current Australian law regarding a director's liability for insolvent trading, prepare a submission to the Australian Government that:
a) Critically analyses the statement that "our current insolvency laws put too much focus on penalising and stigmatising the failures"; and
b) Describes in detail how you would reform the current law and why.
You need only consider the director’s duty to avoid trading while insolvent. You need not consider other laws relating to insolvency. You may not believe that any law reform is warranted. This can be an appropriate answer to question (b), but you must justify your answer. Public submissions to government do not need to follow any particular format. You can therefore use any format you wish, as long as you answer the question using evidence, analysis and argument. This is a research assignment, so proper citation of sources is essential. You must follow the referencing guidelines set out on Moodle. Note you can choose between Oxford (footnote) or Harvard referencing styles, but you must include PAGE NUMBERS. You do not need to consider any laws that fall outside the scope of this course. You do not need to consider any laws other than those applicable in Australia.
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