Assignment BULAW5915 Corporate Law Semester 2, 2019 Instructions The purpose of this assignment is to enable you to consider and research a topic of current interest and relevance to Australian corporate law. The assignment will be marked out of 30. It is important that you take time to think through how to structure and present arguments and to review and discuss what the law is or should be in a particular area. Whilst discussion with others is encouraged, the final piece of work must be your own. Please note that the word limit is 2,500-2,750 words in total. Assignments exceeding the word limit may not be marked and may be returned to the student for re-writing. Assignments less than the required length will risk not covering the topic adequately and may result in a fail. Do not include synopsis, references or bibliography in the word count. Note: All Federation University Australia rules relating to referencing, citation and acknowledgement must be followed. This assignment requires you to do independent research. In this regard, you may find the Library's databases useful. You should appropriately reference your assignment, including in the text of your assignment or as footnotes, and provide a reference list or bibliography at the end of your assignment. Due Date By 11 p.m. Friday in Week 9 - submission through Moodle 'Assignment submission link'. Topic In October 2017, the Black Economy Taskforce Final Report (Report) was released. The Report, and related links, can be accessed through the Treasury (treasury.gov.au) website. The Black Economy Taskforce itself is ongoing. On pages 5 and 6 of the Executive Summary of the Report several 'High Priority Recommendations' are set out. Included in recommendation 6 'Tougher and more visible enforcement' is a recommendation for new and strengthened penalties for phoenixing (amongst other things). Recommendation 16. Phoenixing suggests 'tougher and targeted promoter penalties, better early detection and asset clawbacks'. Required: 1. Explain, in your own words, what is meant by the terms 'the black economy'; and 'phoenixing'' (3+3 =6 marks) 2. What are the estimated costs to the Australian economy of phoenixing? (2 marks) 3. In which industries is phoenixing most prevalent? Why do you think this is the case? (2+2 =4 marks) 4. What are the difficulties faced by regulators in pursuing phoenix entities? In your response consider the role of directors and other 'controlling minds'. (8 marks) 5. What sources, or early warning signs, may assist in the early identification of phoenix activity? (3 marks) 6. What proposals or recommendations are identified in the Report to address the increase of illegal phoenix activity in Australia? Do you think they will be effective - give reasons. (3+4 =7 marks) Hint: As a start to your research, identify and read the relevant chapters in the Report.