Experts have shared that putting the proposed changes to the regulations and laws governing insolvency into practice will end up putting Australia on equal footing with other world nations with regards to restructuring of struggling companies, preventing high funding expenditure and providing greater certainty in liquidations.

With the newly proposed laws, company directors stand to benefit the most. The new laws were announced by the Corporate Law Minister Chris Bowen yesterday, and look to protect directors from legal claims, while also trying to effectively restructure a financially struggling company.

While the new regulations have received massive industry support, there are some who argue that keeping in mind the latest series of firms' collapses; it is the shareholders and not the directors who need protection.

As a part of the major changes to the country's insolvency laws, the Government has announced that it would also be overturning a controversial 207 High Court ruling that allowed shareholders to possess the same rights as other creditors in certain circumstances.

"Informal work-outs play an important role in business rescue and therefore the protection of the shareholders, creditors and employees of distressed business", Mr. Bowen said.