A “phoenix company” is a company that is known by the pre-liquidation name of the failed company or a similar name.  For example, if XY Limited was placed into liquidation then a phoenix company would include XY (2009) Limited.  A phoenix company also includes a company that uses a trading name of the failed company. 

Phoenix companies are aptly named because they rise from the ashes of failed companies.  However, many people are unaware that it is an offence under the Companies Act for a director of a failed company to be a director of a “phoenix company” within 5 years of the date of commencement of the liquidation of the failed company.  A person who is involved in the management of a “phoenix company” can also potentially be personally liable for the debts of the “phoenix company”.