Business insolvencies remained stable during October, despite rising interest rates and the strength of the Australian dollar.
A total of 774 companies entered external administration in October, up just 1% on the same period last year. However, accountants have warned that proposed changes to tax laws could endanger more businesses in 2011.
ASIC looks to crack down on failed directors
ASIC, the corporate regulator, is pushing for tougher penalties for directors of failed companies. ASIC wants to ban directors who are involved in at least four failed companies. The move would raise the number of disqualified directors from 90 to around 1,000 a year.
Gyms win music reprieve
Gyms have won a ruling from the Federal Court that absolves them from paying higher fees to the record industry for music played at their venues. The court’s decision sets aside a Copyright Tribunal ruling last year that decided that gyms weren’t paying enough money for the use of original music.
A surge of optimism in the US saw the Dow Jones industrial average climb by 45.53 points to 11,455.85. The Australian dollar also fared well, jumping to 99.70 US cents.