The Australian Government has now implemented a series of
reforms aimed at preventing illegal 'phoenix' activity
associated with bad actors and rogue behaviour in circumstances
where a company is liquidated, wound up or abandoned to avoid
paying its debts.
One such reform has introduced new section 203AB1 of
the Corporations Act 2001 (Cth) for the purpose of
preventing directors from abandoning a company and leaving the
company without a board. Section 203AB provides that a directors
resignation will not be effective if a company does not have at
least one director at the end of the day a resignation is supposed
to take effect, unless the resignation takes effect on or after the
day the company's winding up begins.
