Dodgy insolvency practitioners will now find it harder to facilitate illegal phoenix activity under the governments new rules to restrict the voting right of certain creditors to prevent collusion.
Assistant Treasurer Stuart Robert announced the introduction of the new insolvency practice rules that will restrict the voting rights of certain creditors related to a phoenix company, in a bid to ensure the interests of legitimate creditors are not affected by those complicit in illegal phoenix activity.
According to the government, one of the techniques employed by phoenix operators is to appoint an insolvency practitioner to undertake a formal insolvency process who will either facilitate or turn a blind eye to illegal phoenix activity.
To pr…
Read the full article at: https://www.mybusiness.com.au/management/5271-new-insolvency-rules-to-protect-legit-creditors