ASIC has prosecuted 81 individuals from 1 July 2022 to 31 December 2022 for failing to assist registered liquidators.
These prosecutions follow the failure of company officers and other individuals to comply with fundamental governance obligations to provide registered liquidators with access to company books and submit a report on company activities and property (ROCAP) where a company has been placed in external administration.
ASIC Deputy Chair Sarah Court said, ‘During the six months to 31 December 2022, ASIC prosecuted 81 individuals for 140 offences under the Corporations Act for failing to assist liquidators and these individuals were fined more than $350,000.’
‘When officers don’t provide a company’s books and ROCAP in a timely manner, it hinders liquidators from properly conducting their investigations and obtaining the best possible outcome for creditors. At a time when the number of corporate insolvencies is increasing to pre-COVID levels, ASIC is closely monitoring directors who do not comply with their obligations and will take action accordingly.’
The individuals were prosecuted summarily in Local and Magistrates’ courts by ASIC and the Commonwealth Director of Public Prosecutions.