The Federal Government has released revised draft legislation directed at companies engaging in 'phoenix'-related activity. The changes aim to address industry concerns raised since the introduction of the proposed laws to Parliament in November 2011.
The laws could impose personal liability on directors for debts incurred by a company if that director was also the director of a failed company with a similar name.
It would impose personal liability on directors of companies that are three months or more behind in superannuation and PAYG withholding tax obligations, whilst also affording ASIC greater power to address more general 'phoenix'-related activity.
For more information on the 'phoenixing' reforms, see our Focus article prepared by Partner Simon Dewberry, Special Counsel Luke Gattuso and Senior Associate Matthew McCarthy.