Late last week the Senate passed the Treasury Laws Amendment
(Combatting Illegal Phoenixing) Bill 2019, which will become
law very shortly.
The tortuous history of this legislation was set out in our
September article, "
Anti Phoenixing Reforms are still circling...". Since then
an amendment was included, during the Bill's recent passage
through the Senate, requiring a 5 year review of the effectiveness
of the new laws.
Directors, and those who advise them, have been waiting for
these amendments for some time, and with some trepidation. The new
laws create a device called a "Creditor Defeating Disposition
(CDD)". This is a sale or disposal of company
property for less than market price, which stops or delays that
property becoming available for creditors in the winding up of a
company.
