Members of boards of directors will now have to have unique director identification numbers as a way of combating phoenix companies where businesses are sent broke but their assets rise again in another company.
The federal government says illegal phoenixing costs the economy up to $3.2 billion a year. Among the latest measures are making directors personally liable for GST liabilities and preventing directors from backdating their resignations to avoid personal liability.
The idea of a unique director number, recommended by the Productivity Commission in 2015, is being introduced to assist in the identification of recurring company failures as rogue directors shift themselves and assets to a new company but …
Read the full article at: https://www.businessinsider.com.au/director-identification-numbers-will-make-it-harder-for-phoenix-companies-to-rise-from-the-ashes-2017-9