The Australian government is proposing director identification number as a weapon to counter company phoenixing.
John Winter, chief executive of the Australian
Restructuring Insolvency and Turnaround Association (ARITA) commented recently on these new laws saying, “The
problem isn’t a lack of law – it’s a lack of enforcement. The lack of
prosecution, and very low-level penalties, can lead business directors to make
a value judgement that the cost of being found to have broken the rules is so
low that they’d be mad not to phoenix the business."
For the phoenixing article read:
https://www.intheblack.com/articles/2018/02/01/new-laws-phoenix-activity
The related phoenixing research also highlights the other current issue of the difficultly in identifying control and beneficial ownership.
For the related three year Detection Disruption & Enforcement Phoenixing research project report see:
http://law.unimelb.edu.au/__data/assets/pdf_file/0020/2274131/Phoenix-Activity-Recommendations-on-Detection-Disruption-and-Enforcement-Melbourne-Law-School-and-Monash-Business-School-February-2017-002.pdf
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