Phoenix Activity: Regulating Fraudulent Use of the Corporate Form

Centre Member: Helen Anderson
Associates: Ian Ramsey, Ann O’Connell, Michelle Welsh
Research Staff: Hannah Withers

Fraudulent phoenix activity is of great concern to Australian policymakers. It occurs where
there is the deliberate liquidation of a company to avoid paying debts but the business
continues through another company, and in corporate groups through the liquidation of
undercapitalised subsidiaries and transfer of business to other companies in the group. This
behaviour causes huge losses in taxation revenue and large financial losses for employees
and unsecured creditors. To strengthen Australia’s economic fabric, this project aims to
determine the optimal method of dealing with fraudulent phoenix activity through a thorough
examination of all of its aspects in Australia and by a comparative analysis of international