To stamp out illegal phoenix activity, directors should be required to have identification numbers. And, if theyve had many corporate failures, they should be classed in a new probationary category, our research shows.
These are a few of several measures we have designed to detect and pre-emptively disrupt those bent on using company liquidation or deregistration to avoid payment of debts before they do harm.
When it comes to stamping out such illegal phoenix activity in Australia, a primary focus on prosecuting those who have done the wrong thing has not been successful.
What is phoenix activity?
A wide spectrum of phoenix activities can occur when a company fails and another entity takes over its business activities….
Read the full article at: http://theconversation.com/heres-what-must-be-done-to-detect-disrupt-and-deter-phoenix-activity-in-australia-73367