What is illegal phoenix activity in Australia?
What is the history of Phoenix law in Australia?
Throughout the 80s, phoenix activity became increasingly prominent in the public eye. In 1994, the first public inquiry into the practice in Australia was initiated: the Inquiry of the Parliament of Victoria’s Law Reform Committee, titled ‘ Curbing the Phoenix Company ’.
Is phoenix activity an offence?
While there may be no offence specifically called ‘phoenix activity’ at the moment, there are a range of ways in which the existing law prohibits this activity and which might be used to take action against individuals.
What is phoenixing and is it legal?
Nor is it defined in any other piece of legislation currently on the books. Focusing on the word itself we can say that, in broad terms, phoenixing occurs where there is ‘re-birthing’ of an enterprise by stripping one company of its assets and transferring them into a new entity which is essentially the same business.