ASIC has issued REP513 being its enforcement outcomes – July – December 2016.

The report focuses on facilitators of serious illegal phoenix behaviours and improper transactions in the face of insolvency.

ASIC states:

• it is intent on disrupting illegal phoenix activity and focusing on facilitators, including rogue insolvency practitioners using a whole of ASIC plan as well as cross-agency collaboration
• it is taking a proactive approach by focusing on future conduct but based on past performance of particular industries that have a disproportionally high rate of corporate failure that can indicate illegal phoenix activity.
• The industries of real interest include, but are not limited to construction, labour hire, security, cleaning and transport
• It will target directors with a history of conduct that may constitute illegal phoenix activity as a guide for predicting future behaviour
• It will target directors who fail to assist liquidators by providing books and records and a Report as to Affairs.
• It will continue to fund liquidators to pursue litigations against a company that allegedly has disposed of its business and assets to a related entity before liquidation of the first company
• It will work closely with the ATO and the Department of Employment in respect of alleged illegal phoenix activity.