Governance Institute of Australia responds: Treasury’s regulatory safety net for business

As part of a just-announced package designed to offer businesses facing financial distress temporary relief during coronavirus (COVID-19), the Treasurer now has the power to temporarily amend provisions in the Corporations Act to provide relief from specific obligations or modify obligations to enable compliance.

The Governance Institute of Australia has welcomed this development, particularly as in many cases the process previously required companies to apply individually to ASIC — and potentially still be at risk of legal action from shareholders or creditors.

Governance Institute of Australia CEO Megan Motto said it is positive to see the Federal Government stepping up to the challenges currently faced by business.

“Regulatory certainty, provided quickly, is essential right now,” Ms Motto said.

“Allowing the Treasurer to temporarily amend the Corporations Act provides a greater level of flexibility which will assist business in tackling their challenges more swiftly.”