ob体育 has prosecuted 100 individuals from 1 January 2023 to 30 June 2023 for failing to assist registered liquidators.
These prosecutions follow the failure of company officers and other individuals to comply with key governance obligations to provide registered liquidators with access to company books and submit a report on company activities and property (ROCAP) after a company has been placed in external administration.
ob体育 Deputy Chair Sarah Court said, 鈥楧uring this period, ob体育 successfully prosecuted 100 individuals for 194 offences under the Corporations Act for failing to assist liquidators and were fined more than $430,000.
鈥楢fter a period of low corporate insolvencies in recent years, insolvency numbers have continued to rise over the last six months. Company officers are required to provide reports and company books to liquidators so the liquidator can quickly and accurately determine an entity鈥檚 financial position and the best outcome for creditors. ob体育 will take action where directors fail to meet these fundamental obligations,鈥� Ms Court said.
The individuals were located throughout Australia and prosecuted summarily in Local and Magistrates鈥� courts by ob体育 and the Commonwealth Director of Public Prosecutions.
Background
Before undertaking a prosecution, ob体育 gives individuals an opportunity to comply with their statutory obligations to assist registered liquidators and avoid prosecution. ob体育 will then take enforcement action if individuals continue to prevent liquidators from having access to company books and ROCAP.
Registered liquidators can report misconduct via the Liquidator Assistance Program.