Due to the COVID-19 pandemic, the Federal Government stepped in and legislated in March 2020 to temporarily suspend key aspects of insolvent trading law in the Corporations Act 2001 (Cth) for a period of six months. The suspension was recently extended to last until 31 December 2020.

In view of these events, do you think that the Federal Government should permanently remove (ie. abolish) Australian insolvent trading law, especially considering that no such equivalent law exists in the United States? If so, discuss why? If not, discuss why not? Or, if you think insolvent trading law should be retained, but modified, discuss why?

End of Question

Important: Do not consider any laws that fall outside the scope of this course, nor any laws of the United States.

Also, do not consider the content of the Coronavirus Economic Response Package Omnibus Act 2020 (Cth) or any other associated Coronavirus legislation.

Your answer must be limited to the relevant contents of the Corporations Act 2001 (Cth) and to policy issues arising from the topic.