AFTER TWO FALSE-STARTS, THE TREASURY LAWS AMENDMENT
(COMBATING ILLEGAL PHOENIXING) ACT 2020 HAS PASSED THROUGH
BOTH HOUSES OF FEDERAL PARLIAMENT AND MOST OF ITS PROVISIONS HAVE
NOW COME INTO EFFECT.
The new laws are intended to combat the practice of stripping a
company of its assets, officers and directors, by moving them,
without any or adequate compensation or remuneration, to another
entity being run by the same directors, officers and/or management
team. The stripped company, left only with liabilities to its
creditors without any assets or revenue to pay them, is then wound
up in insolvency with the result that the rights of creditors,
having no recourse to the assets moved to the new entity, are
defeated.
