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ASIC surveillance targets illegal phoenix activity

ASIC surveillance targets illegal phoenix activity

My Business

The Australian Securities & Investment Commission has launched a new surveillance program to combat illegal phoenix activity that will target company directors with a history of failed companies.

The Australian Securities & Investment Commission has launched a new surveillance program to combat illegal phoenix activity that will target company directors with a history of failed companies.

Phoenix activity is the fraudulent act of transferring the assets of an indebted company into a new company to avoid paying creditors, tax or employee entitlements. The new company, usually operated by the same director, continues the business under a new structure to avoid their responsibilities to their creditors. Research compiled for the Fair Work Ombudsman by PriceWaterhouseCoopers in 2012 puts the cost of this activity to the Australian economy at more than $3 billion annually.

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ASIC action to combat phoenix activities includes removing