The Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020 (Cth) (the Act) came into force on 18 February 2020.
The purpose of the Act is to:
- combat illegal phoenix activity; and
- improve the accountability of resigning directors.
Three years since the Act came into force, we revisit the changes to see what impact they have had and provide an update on their effectiveness. The introduction of the Act coincided with the Covid-19 pandemic and the impact of these changes on illegal phoenix activity is yet to be fully tested. However, given current economic conditions, combined with the effects of the pandemic on businesses, we expect these reforms to become increasingly important. It remains to be seen whether the reforms will be …
Read the full article at: https://lsj.com.au/articles/phoenix-rising-update-on-illegal-phoenixing-legislation/