HARMFUL PHOENIX ACTIVITY AND DISQUALIFICATION FROM MANAGING CORPORATIONS: AN UNENFORCEABLE REGIME?

Abstract

Harmful phoenix activity is estimated to cost the Australian economy billions of dollars per year in losses to creditors, employees and taxation authorities and it appears to be increasingly prevalent. On 12 September 2017 the Minister for Revenue and Financial Services announced a package of proposed reforms to address illegal phoenix activity, stating that “[t]he Turnbull Government is committed to ensuring individuals who engage in illegal phoenixing activity are held to account and that the regulators are equipped to take stronger action to both deter and penalise phoenixing activity for the benefit of all Australians”.