Free Samples
BTX2000 Australian Corporations Law
.cms-body-content table{width:100%!important;} #subhidecontent{ position: relative;
overflow-x: auto;
width: 100%;}
BTX2000 Australian Corporations Law
1 Download5 Pages / 1,155 Words
Course Code: BTX2000
University: Monash University
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Question:
Discuss about the Australia Company Law for Illegal Phoenix Activity.
Answer:
Introduction
Illegal phoenix activity is a situation whereby the company directors intentionally try to evade paying the company creditors. It involves the planned relocation of assets from obligated business to a new business to evade paying creditors, tax or workers rights. Directors abandon the old company for the new one leaving the old company in debts without assets to pay creditors.[1] On the other hand, the new company is then operated by the same directors and in the same business as in the previous company. They continue with the same business under a new structure. Through this illegal business, the directors evade paying debts they owed people at the former company. Altogether, illegal phoenix activity is a grave offense and might result in company directors being jailed. Therefore, this paper examines the extent to which the current laws concerning illegal Phoenix should get changed.
Transactions to Deprive Employees of their Entitlements
The crimes committed by the directors who are involved in illegal phoenix activity are severe and calls for serious legislations to curb. Some of the directors enter into dealings with the aim of stopping the recovery of the employee’s prerogatives of a company that can get recovered.[2] They also get involved in reducing the amount of the benefit of the employees. On the other hand, the appointment of liquidator permits action to be taken under Act Sec 596AB against such directors.[3] However, the provision has never been adequately applied. As enacted in 2000, section 596AB of the Corporations Law Amendment Act 2000 (Cth) was realized to be difficult to implement, also the recommendations for it to be reviewed also failed to be enacted.[4] In 2008 the Joint Committee of Public Accounts and Audit noted the increment of the number of people promoting the benefits of the fraudulent phoenix activity. However, at its hearings, Australia Taxation Office (ATO) realized that the fight against phoenix activity was being frustrated by light penalties and lack of prosecutions.[5] Therefore, it is better to change section 596AB of the Corporations Law Amendment Act 2000 (Cth) to safeguard employees against directors who fails to provide workers entitlements.
Similar Names Bill
Additionally, the law of the illegal phoenix activities should be changed so that to solve the issue of the Similar Names Bill. This bill could be useful if it can deter its targeted behavior; however, its limitations are clearly apparent.[6] It does not prevent phoenix behavior in situations where a different name has been used for a new company. Certainly, in cases where the company has become notorious because of not paying its debts, the previous employers may be forced to look for its beneficiary under a changed name for it to achieve the supply of goods and services.[7] Besides, the Similar Names Bill does not thwart the amalgamation of a new unit with the same name to botched business where a relative of the director of the botched corporation is instead selected as director. Other than that, the Bill also fails to inflict obligation on directors for the liabilities of the company that failed, but only for the debts they owe the new business, and only if the new company is not doing business. Corporative Acts s 182(1) only imposes public liability, but not criminal responsibility.
Problems of Enforcement
Furthermore, the laws governing illegal phoenix activities need to be changed because of the issues concerning its implementation. The government need ask whether the current directors’ responsibilities are sufficient or not. It has been assumed that since phoenix activity is going on, these laws may fail to tackle it, and therefore, there is a need for enacting new legislations.[8] But in reality, the prosecution may not take place if the ASIC lacks resources to take action on the issue. On the other hand, the passage of the further laws will not make any difference to the occurrence of phoenix activity if the ASIC will not have the capacity to investigate violations.[9] The productivity Commission observes that it is a significant issue that considerately undermines the sureness of the creditors in the framework of solvency, and therefore hinders the effectual closure of the business. The Senate Economics Reference Committee also says that there is a significant issue both in the construction industry and economy and that there is a significant culture of disregarding the law.[10] Therefore, it would be vital that ASIC is given the authority to investigate illegal phoenix activities and prosecute.
Personal Reflection
Lastly, I believe that since the illegal phoenix activity laws have got numerous loopholes, it needs to be changed for the safety of the employees and creditors. Moreover, I believe that government is not doing the best to ensure that phoenix activities do not evade paying taxes, which in term lowers the economy of the nation. Furthermore, the Similar Names Bill should get changed completely to curb phoenix behavior. In other words, the Bill should get scrapped entirely to avoid the use of the same name. Doing so may prevent the fraudulent director from using their relatives on their behalf. Besides, ASIC should have the capacity to prosecute the culprits of the illegal phoenix behavior. Finally, I think that the current Corporative Act is inadequate to handle issues concerning phoenix activity; therefore, I recommend that the government should consider reintroducing the provision as a public criminal Act.
Conclusion
To conclude with, the state should accept its duties of tackling illegal phoenix activity, which hurts its revenue and economy, the well-being of the employees, and creditors of various companies. Other than that, the Phoenixing Act and the Similar Names Bill are not likely to cause any harm; it is because they cannot significantly tackle the problem. There is need to look into the reasons why these laws are inadequate or if there any legal issue required before these laws are amended. Lastly, if the government will not act immediately, many people will suffer because of the failed law of the illegal phoenix activity.
References
Anderson, H. (2014). Directors’ Liability for Fraudulent Phoenix Activity–a Comparison of the Australian and UK Approaches. Journal Of Corporate Law Studies, 14(1), 139-173.
Anderson, h. (2015). Fraudulent Transactions Affecting Employees: Some New Perspectives on the Liability of Advisers. Melbourne University Law Review, 39(1), 1-46.
Anderson, H., O’Connell, A., Ramsay, I., Welsh, M., & Withers, H. (2014). Defining and Profiling Phoenix Activity. SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.2536248
Anderson, H. (2014). Pressing the right buttons: Australian case studies in the protection of employee entitlements against corporate insolvency. International Labour Review, 153(1), 117-142.
Cowan, S. (2013). Phoenix Companies and Directors’ Personal Liability. Credit Control, 34(6/7), 8-12.
Giardina, A., & Pinto, D. (2014). A Proposal to Address the Impact of Fraudulent Phoenix Activities on Unremitted Superannuation Guarantee Contributions in Australia. Journal Of Australian Taxation, 16(1), 74-107.
Munro, C. (2009). Govt moves on phoenix activity. Money Management, 23(44), 10.
Rotem, Y. (2013). Small Business Financial Distress and the ‘Phoenix Syndrome’-A Re-evaluation. International Insolvency Review, 22(1), 1-28.
Free Membership to World’s Largest Sample Bank
To View this & another 50000+ free samples. Please put
your valid email id.
Yes, alert me for offers and important updates
Submit
Download Sample Now
Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.
UploadUnique Document
DocumentUnder Evaluation
Get Moneyinto Your Wallet
Total 5 pages
PAY 3 USD TO DOWNLOAD
*The content must not be available online or in our existing Database to qualify as
unique.
Cite This Work
To export a reference to this article please select a referencing stye below:
APA
MLA
Harvard
OSCOLA
Vancouver
My Assignment Help. (2018). Australian Corporations Law. Retrieved from https://myassignmenthelp.com/free-samples/australia-company-law-illegal-phoenix-activity.
“Australian Corporations Law.” My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/australia-company-law-illegal-phoenix-activity.
My Assignment Help (2018) Australian Corporations Law [Online]. Available from: https://myassignmenthelp.com/free-samples/australia-company-law-illegal-phoenix-activity[Accessed 19 December 2021].
My Assignment Help. ‘Australian Corporations Law’ (My Assignment Help, 2018)
My Assignment Help. Australian Corporations Law [Internet]. My Assignment Help. 2018 [cited 19 December 2021]. Available from: https://myassignmenthelp.com/free-samples/australia-company-law-illegal-phoenix-activity.
×
.close{position: absolute;right: 5px;z-index: 999;opacity: 1;color: #ff8b00;}
×
Thank you for your interest
The respective sample has been mail to your register email id
×
CONGRATS!
$20 Credited
successfully in your wallet.
* $5 to be used on order value more than $50. Valid for
only 1
month.
Account created successfully!
We have sent login details on your registered email.
User:
Password:
Getting nightmare regarding pending chemistry assignment? Then it is high time you consider hiring chemistry assignment help service of MyAssigemnthelp.com. We at MyAssignmenthelp.com deliver quality subject specific assistance on more than 100+ subjects. For us, students’ need is foremost, and we work round the clock to offer science, humanities and commerce assignment help. Among Commerce wing, our one of the most popular services is capital budgeting assignment help. In science segment, we have gained popularity with biology assignment help.
Latest Business Law Samples
div#loaddata .card img {max-width: 100%;
}
BU1112 Business Law
Download :
0 | Pages :
6
Course Code: BU1112
University: James Cook University
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answer:
Part A
Issue:
Whether Stella is considered as an employee of PRX?
Rule:
The main difference between employee and independent contractor is stated below:
Employee entered into contract of service, but contractor entered into contract for services.
Employer exercise control over the employee but no control was exercised by employer on contractor. It is considered as traditional test which was developed in Zuijs v Wirth Bros(Zuijs…
Read
More
Tags:
Australia South Lake Management health finance management University of New South Wales
BSBWHS605 Develop Implement And Maintain WHS Management Systems
Download :
0 | Pages :
15
Course Code: BSBWHS605
University: Swinburne University Of Technology
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answers:
Work Health and Safety Management System (WHSMS) is a collection of plans, tools, activities and processes. List 3 of these plans, tools, activities or processes and explain what they are,
The means, nitty gritty beneath, can be utilized whether the arranging procedure is straightforward or complex. They are:
Evaluating the current word related to wellbeing and security status including the ‘administration framework’ Lussier, R. N…
Read
More
Tags:
Australia Brisbane Management Work Health and Safety Management System (WHSMS University of Brisbane MBA
BUSN331 Business Law
Download :
0 | Pages :
3
Course Code: BUSN331
University: Centennial College
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Canada
Answers:
Introduction
In Alberta, the Residential Tenancies Act applies to all the people in this jurisdiction, who rent their space out (Alberta Queen’s Printer, 2016). Through this act, the rights and responsibilities of the landlords and tenants are brought forward (Landlord and Tenant, 2015).
Question 1
Before a tenant can move in the rented accommodation, the tenant and the landlord have to reach an agreement, with regards to the…
Read
More
Tags:
Australia Edmonton Humanities Management University of New South Wales Masters in Business Administration
LA1040 Contract Law
Download :
0 | Pages :
11
Course Code: LA1040
University: University Of London
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: United Kingdom
Answer:
Introduction
A contract is an agreement between the parties which is enforceable legally in the courts. There are several provisions of law which governs how the terms related to the contract would operate. A contract consists of a set of provisions which are known as contractual terms. The weightage of such terms are not equal as one term may have a more significant consequence as compared to the other in relation to their brea…
Read
More
Tags:
United Kingdom London Economics Management University of London
TLAW202 Corporations Law
Download :
0 | Pages :
9
Course Code: TLAW202
University: Top Education Institute
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answers:
1.
If any person wants to carry out his business in the form of a company, then, it is necessary that the registration or incorporation requirements of such country must be met. In Australia, the Corporation Act 2001 and the guidelines laid down by ASIC provides with the steps that must be accomplish in order to establish a corporate entity. (Malbon & Bishop, 2006).
A company is of great significance as it is treated as a …
Read
More
Next