Name based definition of phoenix activity, Business Law and Ethics

Assignment Help:

Q. Name based definition of phoenix activity?

The approach taken in New Zealand has been to define phoenix activity in terms of the re-use of the name, or a name similar, to the former company. Such a definition is simple, making it easily understandable and interpretable for the community. However, many stakeholders noted that a name based definition (such as that enshrined in legislation in New Zealand) is quiet ‘superficial' in that it defines phoenix activity in terms of one of the common indictors, and does not address many of the other indictors. It was also highlighted that such an approach could create a moral hazard whereby companies still engage in phoenix activity, however change their name significantly in order to avoid fitting the legislative definition of phoenix activity.

Additionally in some industries, for example the building and construction industry, the trading name is not of significant importance and therefore, is not always reused in cases of fraudulent phoenix activity.


Related Discussions:- Name based definition of phoenix activity

Law for Business organisation, The concept of separate legal personality is...

The concept of separate legal personality is fundamental to company law. With close reference to leading cases, explain this concept and its relationship to the doctrine of limit

Explain abraham maslow''s hierarchy of needs, Question 1 Mention any ten r...

Question 1 Mention any ten recommendations made by the Honey report Question 2 Explain the following Staff and line Span of Control Question 3 Explain A

What are the ways by which states create international law, Different ways ...

Different ways through which States create International law There are different ways through which States create International law. International conventions mentioned under a

Explain the concept of salomon principle, Question 1: (a) Explain the c...

Question 1: (a) Explain the concept of Salomon Principle and critically analyse its importance in company Law. (b) Discuss why and in what circumstances the court will pierc

Usual procedure - shares of the minority, Usual procedure - shares of the m...

Usual procedure - shares of the minority: Hence the usual procedure is: (a)     first to dispose of possible objections by creditors by paying their debts or providing secu

Explain immunities of international organizations, Explain Immunities of in...

Explain Immunities of international organizations The immunities of international organizations are almost always specified in a treaty between the organizations and the host

Rules for purchase of own shares, Rules for Purchase of own shares: So...

Rules for Purchase of own shares: So now next despite the rule in Trevor V Whitworth a company may purchase or acquire its own shares in the following cases: a) Where it ac

Define the liability, The MV unfortunate was talking passengers to Lyme Cay...

The MV unfortunate was talking passengers to Lyme Cay when it receive a distress signal from a vessel nearby the master started to proceed towards the vessel but stop when he reali

What are the main stages of money laundering, QUESTION1 Compare and con...

QUESTION1 Compare and contrast the Securities Act with the Insurance Act QUESTION 2 (a) What are the main stages of money laundering? (b) Explain the legal framework

Qualifications of judge, Qualifications of Judge Hence for qualify to ...

Qualifications of Judge Hence for qualify to appointment as a judge of the High Court a person must either be as; An advocate of the High Court or may Have b

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd