This podcast is a general introduction to phoenix activity. It is particularly useful to directors and professional advisers looking for a general understanding of what phoenix activity is.
The Federal Government has recently announced that it is going to get tough on phoenix activity in Australia. This position is also supported by the Federal Opposition. On the other hand, there is no political capital to be gained actually going after small business in Australia so the actual reform process has not yielded significant results.
What is phoenix activity?
There is no definition in the Corporations Act but it is generally understood to be moving assets from one company to another for inadequate consideration (i.e. asset stripping) to defeat creditor claims.
Ben Sewell of Sewell & Kettle Lawyers is interviewed in this podcast by Heide Robson from Tax Talks (https://www.taxtalks.com.au/).
Podcast on the new safe harbour for directors hyperlink –https://www.taxtalks.com.au/safe-harbour-for-directors/
Click on the play button below to listen to the podcast
Topics of discussion include:
- What is phoenix activity?
- Is phoenix activity illegal?
- What reforms are proposed?
- What are examples of phoenix activity?
- What has the Phoenix Research Team found out about phoenix activity?
- Using the same name for successor businesses
- Liquidator claims for uncommercial transactions, insolvent trading and unreasonable director-related transactions
- What are the current techniques of phoenix activity?
- How does the Fair Entitlement Guarantee fit into phoenix activity?
- Who is the regulator or pursuer of phoenix activity?
- Can phoenix activity be specifically pursued?
- Is there a legal phoenix transaction that can be utilised by company directors?
- What do insolvency lawyers do?