Can I start a new company after my old one is liquidated?

A new company is allowed, but value cannot disappear

When a company is heading into liquidation, the temptation is to get the tools, vehicles or stock into a fresh entity and keep trading. That can be the wrong move if the old company gives up assets for less than they are worth. ASIC says moving assets to a new company at under-market value can amount to illegal phoenix activity. ([asic.gov.au](https://www.asic.gov.au/about-asic/asic-investigations-and-enforcement/asic-action-on-phoenix-activity/phoenix-activity?utm_source=openai))

Starting again is not banned. The problem is not the new company itself. It is stripping value from the old one and leaving creditors behind. Under the Corporations Act, a disposition can be a creditor-defeating transaction if the price is below market value or the best price reasonably obtainable, and it blocks creditors from getting the asset's value. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2024-01-01/2024-01-01/text/original/pdf/2?utm_source=openai))

Why cheap transfers create trouble

That matters because a liquidator can look back at what was moved out before the appointment. If the transfer was dressed up as a sale but the company did not get proper value, the deal may be unwound or challenged. The result can be delay, extra cost and personal exposure for the people involved. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2024-01-01/2024-01-01/text/original/pdf/2?utm_source=openai))

For a construction business, the risk often shows up in practical things: excavators sold to a new entity for a token sum, vans transferred without records, or material stock shifted off the books. Those steps can make the liquidation harder and can leave the old company with nothing to pay creditors, staff or tax debts. ([asic.gov.au](https://www.asic.gov.au/about-asic/asic-investigations-and-enforcement/asic-action-on-phoenix-activity/phoenix-activity?utm_source=openai))

Source: Official guidance

Buy back the assets properly

If you genuinely want to buy assets and keep working, do it properly. Get an independent valuation first for anything useful, including plant, tools, stock and vehicles. Then pay market value through the liquidator, or through the process the liquidator sets. The paper trail should show a real sale, not a quick reshuffle. ([asic.gov.au](https://www.asic.gov.au/about-asic/asic-investigations-and-enforcement/asic-action-on-phoenix-activity/phoenix-activity?utm_source=openai))

Do not assume family, related entities or a friendly sale price will make it safe. ASIC's guidance says a legitimate phoenix company rescue is different from phoenix activity when the old company receives proper value and creditors are not disadvantaged. If the price is soft, that distinction can disappear very quickly. ([asic.gov.au](https://www.asic.gov.au/about-asic/asic-investigations-and-enforcement/asic-action-on-phoenix-activity/phoenix-activity?utm_source=openai))

Keep records that prove the sale

Keep every document. Save the valuation, sale offer, invoices, bank transfer records, minutes, emails and any liquidator correspondence. Note who approved the deal and when. If you later need to show that the asset changed hands at fair value, those records are often what separates an ordinary sale from a disputed transfer. ([asic.gov.au](https://www.asic.gov.au/about-asic/asic-investigations-and-enforcement/asic-action-on-phoenix-activity/phoenix-activity?utm_source=openai))

Good records also help if the liquidator asks why the business kept trading under a new name, or why certain jobs, contracts or equipment moved. Be careful with logos, websites and site signs too. If the new company looks like the old one while the debts stay behind, the optics can raise questions even when the paperwork is incomplete. ([asic.gov.au](https://www.asic.gov.au/about-asic/asic-investigations-and-enforcement/asic-action-on-phoenix-activity/phoenix-activity?utm_source=openai))

The next move before you trade on

The safest next step today is to stop moving anything out of the old company unless the liquidator or your adviser has cleared it. List the assets you want to keep, get valuations, and wait for a documented sale process. That gives you a cleaner path to keep trading without creating a clawback problem. ([asic.gov.au](https://www.asic.gov.au/about-asic/asic-investigations-and-enforcement/asic-action-on-phoenix-activity/phoenix-activity?utm_source=openai))

If you are unsure what belongs in the liquidation and what can be bought back, contact CRP today about insolvency services. CRP coordinates independent qualified professionals who can review the asset list, sale process and records. This article is general information only and does not decide your legal position. ([asic.gov.au](https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/?utm_source=openai))