ASIC and Illegal Phoenixing

From 18 February, ASIC will have greater powers to prosecute Directors and Advisors who engage in or facilitate illegal Phoenix activity.

Directors and Advisors need to be aware of their personal exposure to actions for breaches of director duties, and assisting those breaches, when a business is transferred to a new entity before the first entity is wound up – ordinarily, a fair market valuation should be obtained, and $$$ transferred.

Director Identification Numbers have been introduced. With an expected surge in insolvencies predicted for the April to June 2021 quarter, Directors (and their advisors) need to ensure that they remain faithful to their duties. Contact Access Law Group to minimise your risks.