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 a 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, http://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 “[o]ur 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.
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