Introduction
The Victorian Government proposes to expand the financial
probity requirements for being a "fit and proper person"
to be registered as a building practitioner. The proposed reforms
respond to concerns that some building companies are deliberately
going into external administration to avoid liability for defective
building work. The Government says that "illegal phoenix
activity" — when a new company is created to continue
the business of a company that has been deliberately liquidated to
avoid its liabilities - will not be tolerated.
The proposed reforms are contained in the Building and
Environment Protection Legislation Amendment Bill 2019 (Vic)
and, if passed, will come into force on 1 December 2020 (unless
proclaimed earlier).
