Company That Change The World Media Essay

Company That Change The World Media Essay Today, the companys worth exceeds RM200 millions, with a turnover of around US1.6 billion and employed more than 1500 staffs. Karangkrafs business was started by publishing their first magazine publication, Mingguan Kanak-Kanak in a little shop lot in Petaling Jaya, Selangor, Malaysia. They sold more than 150,000 copies every week during that time. This is when people realized that Karangkraf is a publishing house that was different. With constant demand of printed reading material from readers in Malaysia, during year 1990, the company started to enter commercial printing business with the opening of Ultimate Print Sdn Bhd and Dasar Cetak Sdn Bhd to provide printing services for Karangkrafs products. By then, with their own printing divisions, Karangkraf started to publish books and novels under its Alaf 21 and Karya Bestari imprints. In year 2006, Karangkraf take a big step by publishing own daily newspaper called Sinar Harian . However, Sinar Harian actually is not the first daily publish by Karangkraf. During the 80s, Karangkraf publish a daily tabloid on entertainment and politics called Ekslusif. But the tabloid had to shut down as government refused to renew the publishing permit. With persistent and bravery shown by Dato Hussamuddin, finally Karangkraf received permit to publish a daily newspaper that known to be unconventional, transparent and ready to publish what others will avoided. This motto is the reason Sinar Harian becoming the number one local newspaper in Malaysia. As years passing by, Kumpulan Karangkraf becomes larger and bigger in terms of size and volume. Then the company takes step in year 2010, with incorporation of Kumpulan Media Karangkraf as the parent company to replace Kumpulan Karangkraf to monitor the four core business divisions: magazines, newspaper, books, printing and digital each managed by its own team of management. 1.2 The Divisions Grup Majalah Karangkraf (Magazine Business) currently is publishing 29 titles of magazines throughout Malaysia that cover different genres for different age and gender. In terms of market share, Karangkraf has taken over about 50% of total magazine market in Malaysia. The magazine division accounts for 30% to 40% of Karangkraf revenue. Grup Buku Karangkraf (Book Division) has published more than a thousand books over the past 10 years. This division currently publishes average of twenty titles monthly to meet the demand of Malaysian readers. The book division contributes about 10% of Karangkraf turnover. Grup Sinar Karangkraf (Newspaper Division) publishes daily local national newspaper, Sinar Harian in the Peninsular of Malaysia. Sinar Harian has eight different editions to supply local news to different regions in the country. The division contributes about 10% to 15% of group revenue. Grup Percetakan Ultimate (Printing Division) is division that contributes nearly 40% of Karangkraf revenue, also is the largest commercial printers in Malaysia. Ultimate Print Sdn Bhd does not only commit to print Karangkrafs publications but also has a big reputation in printing business for having most of major clients such as Sony and Panasonic. Grup Digital Karangkraf (Digital Division) is the latest group in the company. This division was created to engage in digital business and to provide digital reading materials. 1.3 Geographic Market Forty years ago, when Karangkraf has only started, the founder was target to build business within Malaysia as during that time, reading materials were dull and uninspiring. With constant determination to inspire Malaysian to read more and to uphold Malay language, now Karangkraf is one of the biggest publishing groups in Malaysia and it is the largest Malay language publisher. Kumpulan Media Karangkraf Sdn Bhd builds their head quarter in Shah Alam, Selangor, Malaysia which is the head office to all the divisions except for printing division. This head office held most of the staffs such as editors, graphic designers, reporters, and photographers and also the place where books, magazines and newspapers been published. Most photo shoots for their magazines are held in here. Authors of books and novels will send their work to editors here for editing before send to printing division for printing process. For Ultimate Print Sdn Bhd, they have their own office and printing factory nearb y and also in Shah Alam. With skills workers and advance machines, Ultimate Print capable to print 2 million copies monthly. As for newspaper division, this group also has sub offices in different states; Perak, Kelantan, Terengganu, Johor, Pahang, Pulau Pinang, Kedah, Melaka and Negeri Sembilan, according to the state of the Sinar Harian edition. These sub offices are for the editors and reporters to prepare and supply local news faster to the community in the area. Karangkraf currently only publishes their publications in Malay language. Malay language is national language in Malaysia, Brunei, and Indonesia and one of official languages in Singapore. Thus, for the past years, their target customers are only limited to these regions. However, with the fast and advance technology of internet and gadgets nowadays, they have started their digital group division to make their magazines and newspaper available online. Karangkraf already have started to provide purchase services via online to simplify customer to buy and subscribe to Karangkraf publications. With their establish brand, Karangkraf also have explored the need to translate their books and magazines into different languages to get through demand from international readers. 2.0 PRODUCT OF KARANGKRAF; MALAY LANGUAGE NOVEL 2.1 Introduction of Malay Language Novel Publication in Karangkraf The Karangkrafs book division is the collaboration of three publication subsidiaries called Alaf 21, Buku Prima and Karya Bestari. On April 1997, Alaf 21 was born and this is the start point of books business under Karangkrafs wings. Alaf 21 now is known as an establish publisher of Malay language fiction novels. Biofoto Raihan is the first publication under Alaf 21 and started from that, Alaf 21 keep on producing quality reading materials for readers. Alaf 21 also produces motivational, recipe and craft work books. With more than three hundred supplier agents around Malaysia, the market for their books also covers Singapore, Brunei and individuals around the world. 2.2 Type of Good Novels are classified into monopolistic competitive market where there were many firms in the market but the products are differentiated products. Because each novel is unique so the publishers are rather price makers rather than price takers. The cost to reprint additional copy is actually much less than the price of the novel itself. Example, price of a novel by Alaf21 is RM19.90, but the cost to reprint another copy is not RM19.90, it is actually much less than RM4 per copy for normal size paperback novel. Thus, the price is higher than marginal cost which fulfils monopolistic competition case. Other than that, Karangkrafs novels can be specified as a normal good as it is positively related to income because when income increases, quantity demanded followed increases and vice versa. This statement is according to mini survey that was held by our group to loyal novels readers. From 23 respondents, 21 of respondents said that if the price was increased, they will still buy but with quantity less than before. They will limit to novels that received good reviews or certain writers only and not just any novels from the shelf. But if the price is unchanged and their income increased because of bonuses or increments, all of them agreed that they will spend more on novels. As quantity demand and income move in same direction, Karangkraf novels have positive income elasticities (elasticity > 0). At some times, publishers will lowered price of some novel when customer pre-order the novel before it hits the store. The sales revenue of that particular novel will increase resulting from increasing of quantity demanded by customers. Thus, this product agrees with Law of Demand. This is an example for novel titled Adam dan Hawa. After the drama series adapted from the novel screened on television, Karangkraf reprinted the novel and gives lower price of RM16.92 each for readers whom pre-order via online instead of normal price RM19.90 each in the stores. This discounted price got encouraging responses from readers and also the television series fans and has increased the sales of that novel. 2.3 Demand of the Product The brand of Karangkraf and Alaf 21 are well known to Malay language novels lovers. The quality of the novels published has been established and trusted with over forty years of experiences in publication. With new technology and now more substitutes reading materials available in the internet or online, worldwide publication companies had decreasing in quantity demanded of printed reading materials. However, Karangkraf still experienced increasing in profits in their printed publications. Many factors could be the reason of this event such as increasing of income, the trusted Karangkrafs brand or Karangkrafs good marketing strategy. This also shown that the demand of Karangkrafs products did not affected by the substitutes or competitors. Recently, the drama of Adam dan Hawa was screened on television is adapted from the novel by Alaf 21. The popularity of the drama series has causing the same titled novel has increase in the number of sales and the demand for the novel also increasing tremendously. Even though this novel was published on 2005 but the impact of the drama make the quantity demanded for the novel increases. Although there still no exact figure of profits Karangkraf received with this phenomena as the drama still in running on television. With that kind of special attentions were given to a novel, Alaf 21 has reprinted the novel to fulfil the demand and the price of the novel in bookstore is still the same with other title. Another factor that can affect the increasing demand is 1Malaysia book voucher worth RM250 that were given to students. By receiving this voucher the students whom mostly are teenagers tend to spend it for novels than textbooks. This is because one of the major populations who read novel is teenagers or students. Besides education book, novel will be apart as their reading material in a leisure time and for entertainment purpose. 2.4 Target Market Novel is a fictional narrative to represent some characters and usually a plot in different genres such as romances, actions, thrillers or mysteries. Different types of genres attract different group of population. Karangkraf is a publisher that aims all types of generations and genders. This statement can be supported by the types of novel that Karangkraf publishes; love, teenager love, family love, thriller, Islamic and nostalgia. Focusing on Alaf 21 publications, they have more inclination towards publishing romances fictions or chic-lit. So their target markets are women above 20 years old. Karangkraf has stated that romance novels which dominate the Malay book market are mostly read by women above 35 years of age. As for Buku Prima, they are more focusing on publishing lighter content novel and give moral values towards reader. So their target markets are teenagers below 20 years old and also children. Karya Bestari is a publisher for religion or Islamic books and their target m arket are Muslims of all ages. 2.5 Special Characteristics There are a lot of novels published by Alaf 21 become phenomenal to novel fans such as Ombak rindu, Adam dan Hawa, Bicara Hati and Kasih Yang Suci. All this novels are either was adapted into a movie or into a drama series shown by television; hence it increases the commercial value of the novels. This is actually a marketing strategy that now makes Alaf 21 and also Karangkraf, the trusted brands in creative fiction. The impact is that the readers will always waiting for new published novel as they already have confident with the quality and satisfaction in reading of Alaf 21 novels. 2.6 Competitors and Substitutes There are few competitors of publishers in Malay language novel in Malaysia such as Karyaseni Enterprise and Kaki Novel Sdn Bhd. Karyaseni was started their business on 2006 from web based homepage named Penulisan2u.my by collecting short story and novel submitted by authors around the country. They realized the demand and important of printed novels thus Karyaseni as a publication company was born on 2011. Kaki Novel started their publishing Malay language novel on 2005. Both of these publishers are considered very new in this industry while Karangkraf is the pioneer with no peers during their first started. Novel can be said as an entertainment source for reader by giving excitement and fun and sometimes valuable information and moral values to the reader. Reading novel can be sort of a hobby to some people. In the market, there are a lot of substitutes for novel such as comics, magazines, internet, television and other source that can give entertainment to people. Karangkraf must have a good marketing strategy to distinguish from other competitors and substitutes to keep on survive, gain demand and profits. Karangkraf also achieve a competitive advantage as their  business position better within the business environment. They have an advantage in operational effectiveness as Karangkraf have their own printing company. Also with Karangkraf own printing company, novel by Karangkraf is not expensive in the market as they already cut cost in that department. This may attempt to increase quality, productivity, and employees and customers satisfaction with the company. 2.7 Marketing Strategy Karangkraf always involve their writers and authors during launch ceremony of their creations and turning their authors into celebrity. Book signing activity is the usual agenda during the launch of the novel to introduce the author and keep a good relationship between the authors and readers. By that, authors will have loyal fans that will always waiting for new novel by their favourite author. Karangkraf keep on exposing the good and creative creation of their authors for adaptation by directors that will turn the novel into motion pictures. This positive relationship between Production Company and Karangkraf had shown the quality of products by Karangkraf. The novels of Karangkraf that turn into movies and dramas always received high ratings or become a box office movie. The writers will receive royalty and this is a good encouragement towards other writers to keep on giving a creative product and different from others. Karangkraf need to do a lot of promotions to promote their products as well as their writers. Karangkraf take action by always conduct their own book carnivals, Pesta Buku Karangkraf to introduce all of their products in one place. During the events, discounts were given to attract more buyers. Karangkraf also have considered more of their products to be available online to attract more young reader and also the needs of translation into different languages to promote their products outside Malay language regions. Karangkraf also established a web called karangkraf mall whereas a customers may purchase karangkraf product online. The web is very user friendly and makes the process of purchasing easier to the customer. This is an innovation strategy that provides them a competitive advantage. Karangkraf always give great attention and hard work to design their cover page despite the idiom Do not judge the book by its cover, but with attractive design on the cover will capture the buyers eyes from many books in the market. 3.0 CONCLUSION With over forty years of experience in publication, Karangkraf keep on producing a quality product that can be trusted. As a market leader, Karangkraf have their speciality and strength to focuses on what the customer wants from company and how to provide that. They also are able to provide products that are different and offer different features than the competitors. With cost operational advantage they will perform the business activities better and maximize the profit.

Arnica: Water and Bottle Essay

Method: Pour 100ml Olive oil into a bottle and mix it with 20ml Arnica Q. Shake the bottle and the Arnica will form an emulsion with the Olive Oil. Wet the finger tips with the emulsion and part your hair and apply the oil on the roots of the hair and spend some time in massaging it into the scalp which should show an oily shine. This is done daily for best results after a shower. Make a Wet dose of Arnica 30 as follows: Order Arnica 30c in a 5ml in the Liquid Dilution in Ethanol in a bottle with a dropper arrangement. Get a 500ml bottle of Spring Water from the nearest supermarket. Pour out about 3cm of water from the bottle to leave some airspace. Insert 3 drops of the remedy into the bottle and shake the bottle hard before you take a capfull which is a dose twice daily. This is best taken first thing in the morning and last thing before bed. Shaking the bottle hard is homeopathic succussion and this shaking must be done every time before a capful of the bottle is sipped as directed. Take a capsule of the Fish Liver Oil daily. Avoid harsh shampoos. Use Johnsons Baby Shampoo instead. Avoid Coffee, preserved meats like sausages, ham and bacon, and all canned cola beverages as they antidote the therapy. Drink plenty of water and exercise daily for at least 45 minutes like walking or jogging depending on your age. The idea is to sweat it out. This is essential to promote the circulation of blood in the body which Arnica will help to promote. Patients who suffered from severe hair loss who were losing over 200 hairs daily have confirmed that they discovered in about a week that the loss of their hair had been arrested. They also noticed that the new growth was plainly visible above their scalp when their hair was parted in about 6 weeks. In my case I still have a good head of grey hair at age 82 although it has thinned down to about half the hair I had 40 years ago.

Labor Market Research: Calculating Nursing Wages

This paper will explore two of Mankiw’s (2001) â€Å"ten principles of economics† (p. 3) and how these apply to the labor market for nurses. The paper will briefly discuss the two principles: a) â€Å"No. 1 People Face Tradeoffs,† (p. 4-5) and b) â€Å"No. 7 Governments Can Sometimes Improve Market Outcomes† (p. 11). Afterwards, the paper will discuss how the State of New York calculates nursing wages considering the two principles. First, the said discussion will identify the factors that could influence the supply and demand for nurses. Second, it will discuss how a nurse’s pay is determined and how the salary is structured. Third, it will provide recommendations on how the State of New York can increase its supply of nurses. Finally fourth, it will summarize how Mankiw’s two principles basically apply to the labor market for nurses. The two economic principles this paper centers on belong to Nicholas Gregory Mankiw, chairman of President Bush’s Council of Economic Advisers from 2003 to 2005. Principle No. 1, People Face Tradeoffs, refers to the situation when people have to choose one activity or thing over another (p. 4-5). This principle states that people’s choices affect efficiency and equity (p. 5). Mankiw defines efficiency as: â€Å"how huge the pie people create† or essentially the wealth that a society produces while equity is â€Å"how the pie is divided† or the redistribution of the wealth that the society has created (p. 5). Meanwhile Principle No. 7, Governments Can Sometimes Improve Market Outcomes, refers to the imperfect actions of government to manage a society’s efficiency and equity (p. 11). Government actions can result to market failure due to externalities and market power (p. 11). On one hand, externalities can either be good or bad (p. 11). It refers to the unintended results of a particular action in pursuing a certain purpose (p. 11). On the other hand, market power refers to the influence of a person, sector, or society due to limited supply or great demand on a particular thing or service (p. 11). Speaking of service, this paper will next explore the nursing service in the state of New York, then in the entire U.S.A. Brewer and Kovner (2000) identified several factors that influence the supply for nurses in New York. According to the two authors, the factors that affect supply are: a) â€Å"negative real wage growth from 1989 to 1996†; b) decreasing â€Å"admissions and enrollments in nursing programs†; c) â€Å"decrease in licensed nurses†; and d) â€Å"aging and retirement of registered nurses or RNs.† Meanwhile, the U.S. Department of Health and Human Services (2003) identified the following factors that influence the â€Å"continuing decline of nursing graduates† nationwide: a) â€Å"increasing professional opportunities for women outside nursing†; b) â€Å"stagnant pay and more onerous working conditions for many in nursing†; and c) â€Å"a decline in pubic perception of the attractiveness of the nursing profession.† For the demand-side, the U.S. Department of Health and Human Services noted that: â€Å"The U.S. Census Bureau projects a rapid increase in the elderly population starting around 2010 when the leading edge of the baby boom generation approaches age 65.† Hence, the department concludes: â€Å"†¦the rapid growth in demand for nursing services is especially pronounced for long-term care settings that predominantly provide care to the elderly.† Next in the discussion are: a) how a nurse’s pay is determined, and b) how the salary is structured. Brewer and Kovner (2000) pointed out that: â€Å"Hospitals are having significant difficulty financially due to the Balanced Budget Act and state legislation.†Ã‚   The authors also concluded: â€Å"Funding changes that effect hospital financial viability will significantly influence the balance of supply and demand.† Moreover, Brewer and Kovner (2000) observed and opined: â€Å"Current shortages are relatively localized and moderate in severity, and if hospitals achieve sufficient financial relief politically they may abate.† With these evidences, government essentially determines a nurse’s pay. As for how RN salaries are structured, Brewer and Kovner (2000) suggested that: a) great demand versus limited supply; b) experience; c) specialized skills; and d) regional demand variations led to: â€Å"1) ease with which new graduates are finding employment; 2) organizations offering sign-on bonuses; 3) anecdotal and news reports; 4) focus group reports, and 5) surveys of employers which indicate difficulty hiring RNs.† The said factors essentially determine how RN salaries are structured. Thirdly, due to the factors previously identified and discussed, this paper recommends that the State of New York increase its supply of nurses thru: a) recruitment of RNs from abroad, and b) encouragement of retirement homes abroad in countries with sufficient supply of RNs that are acceptable to the U.S. or those that can comply with U.S. standards. Finally, this paper notes that Mankiw’s first and seventh principles have a profound effect on the supply and demand of nurses, RN pay, and RN salary structures. One, based on the data previously discussed, the U.S. shortage in RNs could be attributed to two major factors: a) State legislation and the Federal government’s Balanced Budget Act which essentially reduced the RN supply, and b) the retirement of baby boomers and their great demand for health care. Note that both factors relate to government policies or decisions. Specifically, Roosevelt’s New Deal triggered the baby boom generation while Reagan pushed for the Balanced Budget Act. Two, due to the said government policies which were intended to manage efficiency and equity, the U.S. DHHS observed that people made choices that affected the supply and demand for nurses. This trend shows how positive and negative externalities came into play and determined the current market power of RNs. References Brewer, C.S. & Kovner, C. (2000). â€Å"Abstract: An Evaluation of the Supply and Demand of Registered Nurses in New York State.† Gateway, National Library of Medicine. Retrieved July 14, 2007 Mankiw, G. (2001). â€Å"Ten Principles of Economics.† Principles of Microeconomics Second Edition. Fort Worth, TX: Harcourt College Publishers. pp. 3-15. U.S. Department of Health and Human Services. (2003). â€Å"What is Behind HRSA’s Projected Supply, Demand, and Shortage of Registered Nurses?† Health Resources and Services Administration. Retrieved July 14, 2007

Divorce Prevention Programs - 441 Words

Divorce Preventions Marriage is not something rarely seen nowadays. Populates who have a decent relationship, estimated to continue their relationship to a marriage. However, in the time marriage rate increasing, the increment of divorce rate cannot be avoided. More than a half of all marriages will end with divorcement. (Echols, 2010). Divorce occurs likely because of platonic relationship and poor communication. This essay will examine those problems which cause divorce, and offer three reasonable solutions to prevent divorcement in the community. Also, try to evaluate the effectiveness of the solutions. Nowadays, divorcement is a problem that noticeably on the increase. This issue happens right at most of countries in the world. â€Å"The phenomenal divorce rate among newlywed couples is a serious problem that should be immediately addressed in Palestine.† (Al-Rub, 2014). Indeed, romance is something that beautiful to most of societies. However, romance could also be something that not predictable, in this case is divorcement. Divorce has adverse effects both for women and men. One of the effects that caused by divorce is depression. Depression is one of the most visible divorcement effects. Depression makes mostly people accomplish daily activities, desperately in their life, both in relation to others and themselves. In fact, divorcement also brings bad influence to children whose parents have divorced. â€Å"Children whose parents have divorced are increasingly the victimsShow MoreRelatedMission, Programs, Services, And Operations Of The Agency850 Words   |  4 Pagesc reate an agency that would offer a non-profit and non-medical home-based family preservation program. Later in 1997 both agencies merged with Laporte Hospital. 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A Woman s Leadership Style - 1305 Words

The table above illustrates that women’s economic security is directly linked to their family income, which includes earnings from jobs, but women tend to be concentrated in fields that lead to jobs with low wages. In 2013, 14.5% of women ages 18 years old and older had family incomes that placed them below the federal poverty line, compared with 11% of men (Smilowitz, 2015). It is proven that there is a great disparity throughout the different regions of the United States. The modern-day female has to work as hard as males to deserve any type of respect or appreciation, but at the same time motherhood responsibilities stayed the same. It is believed that biologically females are more sensitive, emotional and self-critical than men†¦show more content†¦A thought leader is a person who is willing to harness the power of ideas to actualize change. A new idea is an opportunity to bring an example of shift, which may provide a new lens for viewing a different framework for understanding. A courageous leader is a person who bravely pursues a vision in the face of considerable opposition and risks. They have strong convictions about their mission, their vision and values. They are the type of leader who is willing to speak up and fight for their values even if what they believe contradicts the norms of everyone else. An inspirational leader is a person who is willing to promote change by the power of their passionate commitment to ideas. Their words and demeanor strengthen the conviction of their employees and motivate them into action. This type of leader continuously has a positive attitude and are constantly creating a strong emotional connection with their employees. Finally, servant leaders are people who care deeply about other people. They are constantly seeking to remove the barriers and obstacles that hold other back from achieving their full potential. They are leaders who attract followers and motivate people to change. These types of leaderships are never the same and there is not one type of leader which is better than the other one. The leader’s main concern is to make a difference within their company and to demonstrate that they are not afraid of being

Cultural and Linguistic Diversity Issues in Education Essay

Teaching is a very rewarding career if you learn and understand how to work with the diversity of the classrooms we teach in. As teachers, we need to be more vigilant of where are students come from. Before we can teach we need to know who we are teaching and what background, knowledge, and customs they bring with them to the classroom. We must also be aware of the factors that are relevant to the academic achievement of the students we currently teach. There are many of these factors, but I want to focus on two; teacher quality and low teacher expectations. According to Bennett and colleagues, â€Å"There is extensive evidence suggesting that students from culturally and linguistically diverse backgrounds experience poorer education†¦show more content†¦These are two factors I am currently trying to work on and improve as I continue with my first year of teaching. Teachers have seen that there is an increase of diversity in their classrooms. 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Corporate Law for Phoenix Activity in Australia- myassignmenthelp

Question: Discuss about theCorporate Law for Phoenix Activity in Australia. Answer: Phoenix refers to the mythical creature which is reborn from the ashes of its own old body upon death. Going by the analogy, phoenix activity describes such a new business which is reborn from the ashes of its defunct business. This contains a range of different activities and practices; though, it mostly contains a director cycle production business assets from different companies where a deliberate attempt is made towards avoidance of liabilities from the trade creditors and tax (Margret and Peck, 2014). The ASIC, i.e., the Australian Securities and Investment Commission has described phoenix activity as such conduct which meets a particular set criteria. When an entity fails to pay its debts; acts in a way where the unsecured creditors are intentionally denied equal access to the assets of the entity for meeting its outstanding debts; and in a period of one year, a different business is initiated where some or all of the assets of the previous business and the same is controlled by the parties which are related to the directors or management of the previous entity (Taylor David, 2014). Phoenix activities are not beneficial for the society. This is because it is such an activity, whereby for the benefit of a few, a huge group of people, including different stakeholders are impacted. This is particularly true because such activities are undertaken for fraudulent purpose, where the theme is to be benefited by indulging in activities which harm different people. Society contains the employees and creditors which are majorly harmed as their debts and rightful earnings are never paid in such cases. Further, by costing the nation millions of dollars, the economy is affected, the impact of which is ultimately born by the society. The purpose of indulging in phoenix activities stems from the fact that it is too easy and lucrative, along with being cheap and largely invisible. By using phoenix activities, the directors or the management of the old company are able to evade their liabilities and continue the business merely by forming a new company, whilst making use of the assets of the old company (Oakes and Clark, 2017). There can always be more than one purpose of indulging in such activities which includes accumulation of debts without having the intention of repaying these debts and even liquidating for the purpose of avoiding the debt repayment. Through the adoption of phoenix activities, the individuals involved in such activities are also able to obtain tax benefits (Australian Government, 2009). By indulging in phoenix activity, a certain segment of individuals are able to benefit, but the majority looses from such activities. The benefit in case of phoenix activities is to the management and directors of the old company, who form the new company, by using the assets of the old company. This is because they are able to use the assets of the old company in their new company, which saves costs which would have to incur otherwise. Secondly, they are able to evade their liabilities which were born due to the debts of the old company, towards the creditors, tax department and the different stakeholder groups. The people who have to bear loss or who are affected by such phoenix activities in a negated manner are higher, than the ones who benefit from it. The Productivity Commission report of 2015 showed that there were around two thousand to six thousand phoenix companies in the nation, which was costing the nation around A$1.8 billion to A$3.2 billion per annum (Productivity Commission, 2015). Based on the Senate Economics References Committee, illegal phoenix activity was a problem for the countrys economy and a major culture of disregarding the law was being followed (The Conversation, 2016). The tax revenues are also affected in a detrimental manner due to major unpaid tax liabilities (Anderson, Ramsay and Welsh, 2016). Apart from the economy of the nation, there are different stakeholders who are negatively affected by such activities. And it can be fairly stated that the illegal phoenix activities have unfair and far reaching consequences. The employees are included in the stakeholder group affected by such illegal phoenix activities. This is because the employees not only lose their wages/ salary but also lose all their entitlements, which they had rightfully earned. The next stakeholder group which is affected by such activities are the creditors, the majority of whom are small businesses, as they are left with their debts being unpaid. The contractors who had contracted with the old company are also affected as the promise made under the contract remains unfulfilled. Hence, the fraudulent phoenix activities adversely affect the creditors, employees, contractors and the public revenue (Anderson et al, 2017a). Even though phoenix activities have been covered under parliamentary inquires, reports and papers, the term phoenix activity has not been specifically defined under the Corporations Act. The Corporations Act, 2001 (Cth) had been recently amended by the Phoenixing Act for giving the discretionary power to the ASIC for winding up a company which has been abandoned if certain circumstances are established. These situations have been covered under section 489 EA of the Corporations Act (WIPO, 2015). The Regulatory Guide 242 has been issued by ASIC which broadly explains the circumstances in which the power could be exercised under Corporation Acts Part 5.4C. In case a company is ordered to be wound up pursuant to section 489 EA, a liquidator has to be appointed for winding up the company affairs and for distributing the companys property (Boss Lawyers, 2017). Even though the corporate law regime of the nation does not define or penalize fraudulent phoenix activities, the directors who are involved in such activities can be made liable. So, a director could be held in breach of different duties like the duty of good faith, use of information or position, and duty of not incurring debts when the company is insolvent (Cassidy, 2006). Such activities could also contain voidable transactions or could lead to breach of provisions covered under Part 5.8A of the Corporations Act, 2001 (Cth), which are aimed at protecting the entitlements of the employees (Martin, 2007). Under section 181 of the Corporations Act, 2001, it is the duty of directors of the company to use their powers and undergo their obligations in a manner which depicts good faith, is for proper purpose and in companys best interest (ICNL, 2017). Section 182 and 183 impose duty for use of position and information of the company, respectively (Federal Register of Legislation, 2017). When the directors indulge in such activities, they do not work in the best interest of the old company and they use the information and position of the old company, for the benefit of the old company. Further, the best interest of the old company is also not kept as the assets of this old company are used to benefit the new company (Martin, 2007). Owing to these actions of the directors, they can be disqualified pursuant to section 206D of this act and can be disqualified from being the director of any company, for a period decided by the court (Latimer, 2012). The director duties are also breached for indulging in insolvent trading pursuant to section 588G (Australasian Legal Information Institute, 2017). This is because the phoenix activities are used when the company nears insolvency or is already insolent and the directors allow the company to continue incurring debts to the creditors, owing to the intention of winding up the company before making the repayment. This gives the creditors the option of making action against the rouge directors (Martin, 2007). ASIC v Somerville Ors [2009] NSWSC 934 was one of the cases where the disqualification order was successfully attained by the ASIC against the legal advisor of the company due to presence of phoenix activity. The defendant was the solicitor who incorporated the legal practice which was advised by the directors of the company who were facing financial difficulties. The reason for holding the defendant liable was due to the fact that he gave the advice to restructure the company even when he was aware of the formation of new company when the trade of the old company had not been ceased (Mullette, 2009). Due to these reasons, a disqualification order of six years was passed against the defendant (Anderson et al, 2017a). In July 2015, the ASIC endorsed different provisions in its Productivity Inquiry as supplementary submission into the setting up, transfers and closure of businesses. This was due to the fact that section 596AB which was meant to stop people from indulging in such activities had limited effectiveness. And also that bringing actions against the directors could prove to be a costly affair. And with this the phoenix prohibitions were introduced (Anderson et al, 2017b). The phoenix prohibitions do not capture the sophisticated phoenix arrangements where the transfer of assets is not included. Though, the position of the ASIC, regarding the creation of the phoenix prohibition does not seem to be consistent in its entirety. It had been identified in the productivity commission report that the director duties are under utilized in the phoenix context and the same is the story of insolvent trading provisions. Even though insolvent trading attracts civil penalties, section 596AB, containing criminal provisions, could only be enforced by the ASIC (Paolini, 2014). So, the criminal conviction can be more difficult than enforcement of the civil provisions. This is due to the fact that for criminal conviction, there is a need to establish elements of mens rea, along with giving such proof which established the claim beyond reasonable doubts (Anderson et al, 2017b). So, the question here is, are the phoenix prohibitions really the solution? The notion of specific phoenix prohibitions is quite appealing. This is because such prohibitions send educative message to the controllers and advisors of the company and even has the potential of increasing the commitment towards compliance. This is due to three distinctive factors, i.e., normative, social and calculative. The first category of people is internally motivated to comply owing to their moral reasoning. So, when phoenix prohibitions are introduced, such people would follow it as they cannot be immoral or do something which is undesirable. Such individuals who are motivated owing to the social factors would have the need of being respected and approved by their peers. So, they would want to avoid reputational damages and negative publicity which could take place from the contravention of these prohibitions. And the ones who are motivated through calculative factors would always take into conside ration the costs of compliance and the chances of a wrong done being detected (Anderson et al, 2017b). And yet, there is not much conviction in these prohibitions and the arguments in favor of these prohibitions are not very convincing. There would be clear difficulty in drafting a legislative provision which is more specific in comparison to the present director duties which could properly cover the different and complex manifestations under such activities. In case such a provision is proposed which deals with externally discernible facts risks, would become very complex, and would be full of loopholes. So, the need is to penalize the wrongdoing, instead of penalizing the situation in which the same took place (Anderson et al, 2017b). The need here is not to bring out additional complexity to the laws which govern the unlawful phoenix activities at the present, and instead, the need is to strengthen the profit stripping and compensation remedies, in addition to the imposition of punitive penalties which are present for the contravention of the director duties. Through adoption of such proposal, the dual function would be served as the ASIC would be incentivized and the private litigants would be using the breach provisions more often due to the chance of gaining more from the enforcement actions; and it would also deter the illegal phoenix operators owing to the fact that they would lose a higher amount being engaged in phoenix activity (Anderson et al, 2017b). There is a need to adopt an alternative to the phoenix prohibitions. This is to improve upon the current provisions, instead of bringing out an additional burden. There is a need to seek sanctions for the breach of director duties. There is a need to introduce major penalties, along with the need to couple the losses born from such activities and the financial gain attained to be used to compensate the ones who had to bear such losses, and also increasing the costs of non-compliance for the directors. Though, this requires and effective enforcement mechanism particularly with regards to the director duties. There is also a need to enhance the frequency of enforcement actions by the ASIC. And this is where the law needs to be amended so as to send a key message to the enforcers and the miscreants (Anderson et al, 2017b). As highlighted in the previous segment, there is a need to bring out changes in the current law by imposing higher penalties. In this regard, there is also a need for structuring of the phoenix prohibitions or offences in a manner, so as to include such penalties. There is a need to include the provisions of Crimes Act 1900 (NSW) into the phoenix prohibitions and to oversee that these are strictly applied. In this regard, three sections are prominent: Section 192F which deals with the intention to defraud by destruction or concealment of accounting records; Section 192G which deals with the intention to defraud by using or making false or misleading statement; and Section 192H which deals with the intention to deceive the creditors or the members by using or making false or misleading statement of officer of the organization (NSW Legislation, 2017). There is an immediate need of expanding the reach of compensation orders which are awarded by the court under section 1317H. This has to be done in a manner so that the compensation orders include accounts of profits orders and possibly a compensation of these two. So, the court could order the liable person to compensate for the damages suffered, along with a civil penalty and could also include the profits made by indulging in phoenix activities. The liable party also needs to include the controlled beneficiary person and the involved beneficiary person. And the damages to cover the diminution of the property and the profits made (Anderson et al, 2017b). Apart from this, there is a need to increase the relevant criminal, as well as, civil penalties. Under the present laws, the maximum pecuniary penalty which can be awarded for breaching the director duties is $200,000. However, there is a need to understand that these penalties were drawn back in 1993; and with the inflation, there is a need to adjust these. There is a need to raise this limit so as to actually be significant enough so that the imposition of it greatly affects the offenders. Similarly, the present criminal penalty units for this breach also need to be brought up. There is a need to structure all these properly in the phoenix prohibition for it to be successful (Anderson et al, 2017b). References Anderson, H., Ramsay, I., and Welsh, M. (2016) Illegal phoenix activity: Quantifying its incidence and cost. [Online] Melbourne Law School. Available from: https://law.unimelb.edu.au/__data/assets/pdf_file/0003/2070363/Anderson,-H,-Ramsay,-I,-and-Welsh,-M,-Illegal-Phoenix-Activity-Quantifying-Its-Incidence-and-Cost-2016-24-Insolv-LJ-95.pdf [Accessed on: 23/08/17] Anderson, H., Ramsay, I., Welsh, M., and Hedges, J. (2017a) Phoenix Activity. [Online] Melbourne Law School. Available from: https://law.unimelb.edu.au/__data/assets/pdf_file/0020/2274131/Phoenix-Activity-Recommendations-on-Detection-Disruption-and-Enforcement.pdf [Accessed on: 23/08/17] Anderson, H., Ramsay, I., Welsh, M., and Hedges, J. (2017b) Illegal Phoenix Activity: Is A Phoenix Prohibition The Solution?. [Online] Griffith University. Available from: https://law.unimelb.edu.au/__data/assets/pdf_file/0004/2271613/Anderson-et-al,-Illegal-Phoenix-Activity-Is-a-Phoenix-Prohibition-the-Solution-2017-Company-and-Securities-Law-Journal-forthcoming.pdf [Accessed on: 23/08/17] Australasian Legal Information Institute. (2017) Corporations Act 2001. [Online] Australasian Legal Information Institute. Available from: https://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/ [Accessed on: 20/08/17] Australian Government. (2009) Action against fraudulent phoenix activity. [Online] Australian Government. Available from: https://archive.treasury.gov.au/documents/1647/PDF/Phoenix_Proposal_Paper.pdf [Accessed on: 23/08/17] Boss Lawyers. (2017) What is Phoenix Activity? [Online] Boss Lawyers. Available from: https://www.bosslawyers.com.au/phoenix-activity/ [Accessed on: 23/08/17] Cassidy, J. (2006) Concise Corporations Law. 5th ed. NSW: The Federation Press. Federal Register of Legislation. (2017) Corporations Act 2001. [Online] Australian Government. Available from: https://www.legislation.gov.au/Details/C2013C00605 [Accessed on: 20/08/17] ICNL. (2017) Corporations Act 2001. [Online] ICNL. Available from: https://www.icnl.org/research/library/files/Australia/Corps2001Vol4WD02.pdf [Accessed on: 20/08/17] Latimer, P. (2012) Australian Business Law 2012. 31st ed. Sydney, NSW: CCH Australia Limited. Margret, J.E., and Peck, G. (2014) Fraud in Financial Statements. Oxon: Routledge. Martin, A. (2007) Directors' Duties and Phoenix Companies. [Online] Allens Arthur Robinson. Available from: https://www.allens.com.au/pubs/pdf/insol/pap4apr07.pdf [Accessed on: 23/08/17] Mullette, S. (2009) Phoenix Rising - Advisors to directors of phoenix company burned. [Online] Bartier Perry Lawyers. Available from: https://www.bartier.com.au/insights/phoenix-rising-advisors-to-directors-of-phoenix-company-burned/ [Accessed on: 23/08/17] NSW Legislation. (2017) Crimes Act 1900 No 40. [Online] NSW Legislation. Available from: https://www.legislation.nsw.gov.au/#/view/act/1900/40 [Accessed on: 20/08/17] Oakes, D., and Clark, S. (2017) Phoenixing companies too easy and lucrative in Australia, new report finds. [Online] ABC News. Available from: https://www.abc.net.au/news/2017-02-24/phoenixing-companies-too-easy-in-australia/8301638 [Accessed on: 23/08/17] Paolini, A. (2014) Research Handbook on Directors Duties. Northampton, MA, USA: Edward Elgar. Productivity Commission. (2015) Business Set-up, Transfer and Closure. [Online] Australian Government. Available from: https://www.pc.gov.au/inquiries/completed/business/report/business.pdf [Accessed on: 23/08/17] Taylor David. (2014) What is Phoenix Activity? [Online] Taylor David. Available from: https://www.taylor-david.com/news/what-is-phoenix-activity [Accessed on: 23/08/17] The Conversation. (2016) Illegal phoenix activity is costing us billions heres how it could be stemmed. [Online] The Conversation. Available from: https://theconversation.com/illegal-phoenix-activity-is-costing-us-billions-heres-how-it-could-be-stemmed-65335 [Accessed on: 23/08/17] WIPO. (2015) Corporations Act 2001. [Online] WIPO. Available from: https://www.wipo.int/wipolex/en/text.jsp?file_id=370817 [Accessed on: 20/08/17]