Re-registering a Company

If you ever wondered what would happen if you didn’t pay your annual ASIC fee (currently $267 per annum) then wonder no more. Your company might end up involuntarily deregistered. Is it easy to fix ? No. Although applying to ASIC for the reinstatement of a company is preferable to a court application – neither […]

Phoenix Taskforce goes door knocking

This week we were told that between 1 July 2020 to 30 June 2021, officers from ASIC and the ATO (‘the Taskforce’) conducted consultations with directors of selected companies in a proactive campaign to deter directors from engaging in illegal phoenix activity.  These consultations seem to be part of the Taskforce’s approach to target companies […]

Legal Phoenix

Not all company failures involve illegal phoenix activity, as genuine company failures do occur. Where a director has responsibly managed a company and it subsequently fails, they can operate the same business using another company without engaging in illegal phoenix activity.  This is often referred to as a ‘company restructure’. A responsibly managed company means […]

Illegal Phoenix

Illegal phoenix activity is difficult to define and certainly there is no obvious statutory offence that refers to such behaviour in the Corporations Act.  The key characteristics which define illegal activity, not to be confused with legal phoenix activity, involve breaches of director’s duties such as where a director has not acted in good faith […]

3 failures cops 4 years

In this WA case, the director was disqualified from managing corporations for 4 years for his involvement in 3 companies that went into liquidation – Corporations Act s260F.   What does s206F require? For further details on this case ASIC Media Release 21-238

Deregistration vs Liquidation

Voluntary deregistration Deregistration can occur in two ways – either voluntary or involuntary.  Let’s look at voluntary first. This involves the Company paying a $42 fee, completing an ASIC form that primarily involves box ticking – and confirming that the information is true and correct.  That’s it –  once accepted by ASIC the Company is […]

Unfair Preference Claims

Liquidators should not use scattergun approach Unfair preferences are important recoveries for liquidators because in many cases they are all that can be used to pay the liquidators’ costs. Creditors should only return the money if the liquidators’ claim is legitimate – don’t become a victim of the ‘scattergun’. Liquidators are not supposed to pursue […]