Journal article

SHELTER FROM THE STORM: PHOENIX ACTIVITY AND THE SAFE HARBOUR

Helen Anderson

MELBOURNE UNIVERSITY LAW REVIEW | MELBOURNE UNIV LAW REVIEW ASSOC | Published : 2018

Abstract

A 'safe harbour carve out' from insolvent trading liability is intended to encourage directors, particularly of large companies, not to prematurely liquidate financially troubled companies which could be rescued. While the federal government has been successful in introducing this measure, which was part of its 2016 National Science and Innovation Agenda, this article argues that some of the underlying justifications for the safe harbour are flawed and that it may not be effective. A more significant objection is that the safe harbour could lead to a greater prevalence of illegal phoenix activity, sheltering under the appearance of business rescue. The benefit of the liability carve out to t..

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University of Melbourne Researchers

Grants

Awarded by Australian Research Council


Funding Acknowledgements

The author would like to thank the Australian Research Council for its generous support of this research: Australian Research Council Discovery Grant (DP140102277: Phoenix Activity: Regulating Fraudulent Use of the Corporate Form). I thank the anonymous referees for their helpful comments. The views expressed in this article are my own.