Illegal Phoenix Transactions
Moving assets from one company to another for undervalue is Illegal.
As Featured In
Lowest Cost Company Liquidation
Avoiding Phoenix Transactions
ASIC and the Federal Government are extremely concerned about illegal phoenix activity by directors.
The Insolvency Experts Can Help:
Explain your Position and Options
Handle Your Liquidation
Provide Free 24 Hour Advice
Stay within the Law
A Phoenix transaction typically involves the illegal transfer of the assets from one company (usually with overwhelming debt) into another (without debt), for little or no consideration, for the purpose of avoiding or defeating the claims of creditors.
While the assets and business operations are transferred into the new company for little or no money, the debts remain in the old company.
The creditors of the old company have no direct recourse against the new company that now holds the assets. Creditors may only attack the old company and seek to have a liquidator appointed who will then investigate the alleged phoenix transaction.
Do You Need Help or Want to Talk?
Call 1300 767 525 to speak with us, or fill in your details below and one of our expert advisors will get back to you within 30 minutes!
Liquidators will investigate and report phoenix transactions
Once a liquidator is appointed, alleged phoenix transactions will investigated and reported to both creditors and the ASIC. A phoenix transaction is illegal. It is designed to leave no assets or funds available in the old company and should never be contemplated.
Liquidators will report an alleged phoenix transaction
Liquidators who encounter phoenix transactions have a number of options. First, they may seek creditor assistance and funding. A liquidator may also make a claim for funding under the ASIC Assetless Administration Fund – a fund designed to enable liquidators to report and take action against directors.
Liquidators will report breaches of directors duties
An illegal phoenix transaction is a breach of directors duties in terms of breaching the duty of:
- diligence and good faith
- not making improper use of position
Penalties for Phoenix Transactions
Directors that engage in illegal phoenix transactions may be liable for:
- Civil Penalties: up to $200,000 and a compensation order for the loss caused to the company.
- Criminal Penalties: fines and imprisonment
- Director Banning : disqualification for up to 10 years
Phoenix activity involves the intentional transfer of assets at undervalue from an indebted company to a new company without debt to avoid paying creditors, tax or employee entitlements. Such action is illegal.
Our Approach To Helping Your Financial Problems
The Insolvency Experts are ASIC licenced insolvency specialists who will help you FREE of charge and without obligation, 24 hours a day.
All you need to do is call to obtain answers, options and solutions to the most difficult financial situations.
The Insolvency Experts will tell you exactly what you need to know – not what you may want to hear. By doing this, we empower you, through the provision of correct information, to make the best and most informed decisions about your finances in difficult circumstances.
The Insolvency Experts who you will speak with are licenced professionals with over 30 years specialist insolvency experience. We have helped thousands of people just like you in the most dire financial situations.
We have a proven track record of honesty and trustworthiness and seek to maintain the highest ethical and moral standards while providing you with sound, professional advice.
Call – an ASIC licenced expert will assess your financial situation and provide expert tailored advice.
Answers – will be given to every question. There is no time limit on these consultations.
Options – will be canvassed and explained so you can make an informed decision that is best for you and your family.
Solutions – including both informal and formal solutions. These may include Company liquidation or Administration.