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112 Company Officers Prosecuted
To assist liquidators and remind company directors of their obligations before and after an insolvency, ASIC Chairman David Knott announced that we have undertaken 119 summary prosecutions in the last 5 months under a new initiative.

The following story is reproduced by kind permission of ASIC

'This initiative has been made possible by increased budget funding for ASIC's enforcement activity in the 2002 Commonwealth budget', Mr. Knott said.

Since 1 July 2002, we have prosecuted 112 individuals and 7 companies who have breached their duties and obligations under the Corporations Act. The prosecutions have occurred in Local and Magistrates Courts.

Those prosecuted have been required to pay a total of $149,794.05 in fines and costs.

Our actions covered a broad spectrum of corporate misconduct, most notably:

  • prosecuting company officers for failing to assist insolvency practitioners in the administration of their failed companies, which denies employees and creditors potential returns; 
  • prosecuting company officers and their companies for failing to update ASIC registers with the addresses of the companies and company officers, which thwarts creditors' debt-recovery processes; and 
  • prosecuting people for using company structures when they are not registered to do so, which means that customers and individuals are denied an entity against which they can pursue legal claims. 

We also obtained eight court directions for officers of failed companies to provide liquidators with reports, books and records relating to the affairs of the entity.

Another 65 individuals and companies are currently facing 113 similar ASIC charges, while another 152 like matters are being investigated.

For a schedule of the matters prosecuted, visit the ASIC website www.asic.gov.au. The schedule will be updated each month.

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