Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020

Implications for directors resigning from 18 February 2021

Last year, the Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020 (Phoenixing Act) was enacted to target illegal phoenix activities, where directors create a new company to continue the business of an existing insolvent company to escape paying outstanding debts.  The Phoenixing Act introduces several amendments to the Corporations Act 2001 (Cth) (Corporations Act).  The changes introduced by the Phoenixing Act mainly seeks to prevent directors from improperly backdating resignations or resigning leaving a company without any directors. [Read more…]

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