Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020 (6 of 2020)

Schedule 1   Phoenixing offences and other rules about property transfers to defeat creditors

Part 1   Main amendments of the Corporations Act 2001

Corporations Act 2001

9   After subsection 588E(4)

Insert:

(4A) In determining for the purposes of the recovery proceeding whether a disposition of property of the company is a creditor-defeating disposition, the consideration payable to the company for the disposition is to be presumed to be less than both the market value of the property and the best price reasonably obtainable for the property, if it is proved that the company:

(a) has failed to keep financial records relating to the disposition as required by subsection 286(1); or

(b) has failed to retain financial records relating to the disposition for 7 years after the disposition as required by subsection 286(2).

This subsection is subject to subsections (5) and (6).