How to investigate or know about Builders / Developer Phoenixing?

Discussion in 'Legal Issues' started by [d4rk-fr3d], 9th Sep, 2020.

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  1. [d4rk-fr3d]

    [d4rk-fr3d] Well-Known Member

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    Phoenixing is when a new company is created to continue the business of a company that has been deliberately liquidated to avoid paying its debts.

    How can we know about the Builders or Developers previous history of Phoenixing?

    Are we able to search it from: ABN Lookup or is there any paid service to access the database?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You could do an ASIC seach and find what previous companies the directors of the current one were directors of. Then search those companies to see if they were placed into administration or liquidation. Then you can request documents from ASIC.

    You would need to pay for each search.

    Note that it won't show up where there are different directors each time so you could search for the shareholders of these companies and then see what other companies they have held shares in and then search these companies.
     
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  3. [d4rk-fr3d]

    [d4rk-fr3d] Well-Known Member

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    @Terry_w Thank you for the quick response, so I will need to access this page: https://connectonline.asic.gov.au/RegistrySearch/faces/landing/SearchRegisters.jspx

    "see what other companies they have held shares in and then search these companies."

    So if the previous company has been disbanded or made bankrupt, does the information is still retained for historical purpose?

    I wonder if those crafty developers, also made some "amendment" or update to remove the details to avoid this search. Is this scenario even possible or not really.
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    yes deregistered companies are still recorded
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    search for a random word and you will find some quickly
     
  6. Lindsay_W

    Lindsay_W Well-Known Member

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    I assume it's not that simple to prove phoenix activity (ie. previously bankrupted builder starts another building company doesn't necessarily prove phoenixing) surely intent needs to be clear, but I'm not a lawyer
    What's happened?
     
  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Why would a property buyer be concerned? Pheonixing concerns company creditors. Not buyers.
     

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