50 signatures reached
To: Prime Minister Malcolm Turnbull
Let's End Phoenix Companies
Dear Mr Turnbull,
We the undersigned, demand that you immediately reform ASIC and work towards ending Australia's $3 billion problem of phoenix companies.
Thousands of Australians each year lose their wages, their money, or their homes and businesses to this problem. It is one of Australia's biggest scams.
When a company director deliberately makes a company broke, in order to start trading again through a new company leaving innocent people unpaid, this is known as 'phoenix activity'. It is a serious crime, but it continues to happen each day.
It can happen to anyone at anytime.
ASIC is meant to take action but ASIC generally takes no meaningful action against phoenix companies.
Mr Turnbull, in 2016 you received a letter about this $3 billion problem, which was given to you by the deputy opposition leader Tanya Plibersek (http://www.innovationmentor.com.au/blog/will-asic-finally-take-action-against-this-shocking-phoenix-company-in-turnbulls-own-electorate), but instead of reforming ASIC to end this problem, you actually extended the contract of ASIC's chairperson Greg Medcraft.
Typically when an organisation has failed, the first step is to change its leadership, but in 2016 you did the exact opposite with ASIC.
ASIC have a serious problem of publicly acting as if they investigate phoenix companies, but they take no meaningful action towards ending this crime.
In your ASIC Enforcement Review Taskforce, there is no focus on phoenix activity and there is no representation from people that have actually been impacted by phoenix companies.
The number of phoenix companies continues to grow, just to name a few:
1. The staff at the Artel Restaraunt and Gallery, still continue to be impacted by phoenix company Vales Catering Pty Ltd. https://www.youtube.com/watch?v=mhclIj97wEg
2. The family associated with Hairdressing salon Talking Heads Pty Ltd, still continues to be impacted by phoenix company Zedbe Pty Ltd https://www.youtube.com/watch?v=FqUiBelZwyY&feature=youtu.be
3. Although it appears that ASIC investigated, the Shareholders of 3D Group Pty Ltd/3D Industries, still continue to be impacted by phoenix company 333D Ltd, after ASIC did nothing - http://www.abc.net.au/news/2016-01-30/asic-investigating-case-involving-worlds-largest-3d-printer/7121526 ;
4. Live Board Holdings Limited, still continues to be impacted by phoenix company Cody Live Pty Ltd https://www.crikey.com.au/2014/09/09/multimillion-dollar-real-estate-business-collapses-amid-claims-of-harassment-and-fraud/
The list goes on and on. This is just a small sample of a massive $3 billion problem affecting thousands of Australians each year and happening in every Australian industry, ranging from Construction, Retail and Real Estate, to Agriculture and Technology.
Mr Turnbull, we the undersigned, demand that you immediately take action to reform ASIC and work towards ending the problem of phoenix companies in Australia.
Why is this important?
Australia has a $3 billion problem of phoenix companies.
Know anyone that's lost money to a company going "broke" only to see a similar business start trading again as if nothing happened? When this is done deliberately, it is known as 'phoenix activity' and costs Australians $3 billion each year. It affects thousands of people and it can happen to anyone at anytime. It causes approximately 100 times the devastation of our typical street robberies.
It typically involves 'friendly administrators' or 'friendly liquidators', terms which have now become common when doing business in Australia, however, illegal phoenix companies are a serious crime.
It is meant to be enforced by ASIC, but ASIC takes no meaningful action.
How it will be delivered
This petition will be delivered to Mr Malcolm Turnbull's office.