In Re Balmz Pty Ltd (in liq) [2020] VSC 652, the judge made the following observation after finding that the spousal directors of a family company (running a family business) had acted in breach of insolvent trading law under the Corporations Act 2001 (Cth):

I am saddened that [the company's directors] Mr and Mrs Patch find themselves in the position they are now in [in breach of insolvent trading law]. It is clear that Mrs Patch was motivated to found the business of the company and to continue it to provide employment for her disabled son who now resides with [them] ... in modest accommodation when compared to their former residence. Both [company directors] are now pensioners. I also note that [the directors] lost three properties and their superannuation funds to prop up the company's operations.

QUESTION; In light of the judicial comments above, do you think that the Federal Government should abolish Australia's insolvent trading law in the Corporations Act 2001 (Cth)? If so, discuss why? If not, discuss why not.

- please, as many words as possible

- would be good if i could get an advised structure to answer this question i.e. what should i talk about in the various paragraphs