BULAW5915 Corporate Law: Phoenixing and Black Economy

This report examines the issue of phoenixing within the Australian corporate law context, exploring its relationship with the black economy. It defines phoenixing as the illegal practice of dissolving a company to avoid debts and liabilities, and discusses its negative implications on the Australian economy, including losses in government revenue, unpaid wages, and superannuation. The report highlights the prevalence of phoenixing, particularly in the building and construction industry, and identifies challenges faced by authorities in addressing this issue, such as identifying controlling directors and a lack of coordination between regulatory bodies. It also explores early warning signs and potential solutions, including the use of financial transactions and collaboration between various parties to identify and prevent phoenixing activities. The report concludes with recommendations from the Black Economy Taskforce to address the issue, emphasizing the need for early warning systems and collaboration between public and private sectors.