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Defining phoenix activity in legislation
Some stakeholders noted that defining phoenix activity in legislation could be beneficial if the definition was appropriate and it was accompanied by specific penalties for engaging in the activity. However, it was also noted that enshrining a narrow definition in legislation, such as that used in New Zealand, could have unintended consequences and potentially make it more difficult to address phoenix activity.
Some stakeholders also noted that the most important thing in addressing phoenix activity is not having a single definition, but ensuring that all relevant agencies and stakeholders have a sophisticated understanding of the activity and how to identify it. Union stakeholders emphasised that ensuring there is the 'necessary infrastructure and resources' to address phoenix activity is of upmost importance.
Managing Director: In Ellis v Bailey and Company (East Africa) Limited (76) it was stated that "without specific authority in the articles directors may not appoint one of the
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Q. Suggested actions for addressing phoenix activity? The following actions are suggested for addressing phoenix activity. Those that have been suggested are the actions that:
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