Phoenix Companies as an Abuse of Companies
Michelle WELSH, Helen Anderson
Abuse of Companies | Kluwer Law International | Published : 2019
There has been an increased focus on the abuse of the corporate form in recent years. Part I of this book contains examples of how companies may be abused. It draws on those examples to highlight the fact that determining where the line should be drawn between behaviour that constitutes the creative use of the corporate form and behaviour that constitutes an abuse of the corporate form is not an exact science, and in fact may be a very difficult task. However, it is important that such a line be drawn because if behaviour is determined to be an abuse of the corporate form then it legitimises calls to regulate for the purpose of reducing such behaviour.