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ASIC and the Federal Government to stop illegal phoenix activity

This petition had 517 supporters

Stephanie Brown is an ex-employee of The Artel, a bistro and gallery in McLaren Vale South Australia. She has been employed with out pay for 5 weeks as have many employees who have worked there. This Business is currently run by a company called Vales Catering Pty Ltd. I said currently because before July last year it was run by a company called Redaley Pty Ltd, who's Director Bradley Redman is the Husband of Vales Catering's Director Kate Redman. Redaley Pty Ltd went into liquidation on the 13th of July and the next day Vales Catering took over the reigns of The Artel. Redaley went into liquidation owing over a quarter of a million dollars to its staff and creditors as the company was running insolvent. Vales Catering has been operating this business is the same manner as Redaley, not paying staff their employee entitlements. The previous Director is now an employee, but by his conduct holds himself out as "the directing mind of the company". His latest excuse to staff, including Stephanie Brown is that he cannot pay wages as someone owes "him" $50k. As he is not the Director and his input into the company is apparently limited (by law he cannot act as a Director of a company as he is Bankrupt) what would someone owing "him" $50k have to do with the solvency of the company. This is obvious proof of phoenix activity, which is illegal. It is time the Federal Government takes action against this type of activity as these business hurt honest hard working employees and legitimate business who make contracts with them. The issue is that how can the law let companies who undertake dodgy business practices, and trade whilst insolvent be allowed to wipe their slate clean of debt, and then reopen the next day declaring business as usual. For more  information follow the links provided


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