Sensible steps to deter and detect illegal phoenixing will benefit Australian business, the Australian Chamber of Commerce and Industry has said today.
James Pearson, Chief Executive of the Australian Chamber, said:
“Australian businesses stand to benefit from the Government’s action to address illegal phoenixing. Small and medium sized businesses in particular can find themselves significantly out of pocket when their invoices go unpaid because of this illegal behaviour.
“The Corporations Act already imposes significant reporting obligations on companies and directors, however the business community is open to Director Identification Numbers.
“Action to stamp out illegal activity must be surgical in its approach, targeting the problem without discouraging legitimate entrepreneurship.
“It is a fact of life that some legitimate businesses fail, people need to be able to pick themselves up and start again. We need our laws to deter illegal behaviour while encouraging healthy risk taking and innovation.
“We welcome the Government’s consultation and willingness to work with the business community to address illegal phoenixing.”