Consultation on reforms to address illegal phoenix activity

The Treasury has today released a consultation paper on reforms to address illegal phoenix activity. This follows on from the press release by the Minister for Revenue and Financial Services on 12 September 2017.

There are some significant reforms being proposed in this consultation paper, including:
  • cab rank rule for appointment of liquidators to high risk companies
  • a possible government liquidator
  • removing the rights of related parties to vote on the replacement of a liquidator
  • extending penalties to capture promoters and advisors
  • extension of DPNs to GST
  • new rules around resigning as a director
Members are recommended to read the paper.

The timeframe for submissions is very short, with submissions due by 27 October 2017. If members have any comments or feedback, they are encouraged to send an email to the Specialist Team as soon as possible.