ASIC prosecutes 100 individuals for failing to assist registered liquidators

ASIC 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.

ASIC Deputy Chair Sarah Court said, ‘During this period, ASIC successfully prosecuted 100 individuals for 194 offences under the Corporations Act for failing to assist liquidators and were fined more than $430,000.

‘After 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’s financial position and the best outcome for creditors. ASIC will take action where directors fail to meet these fundamental obligations,’ Ms Court said.

The individuals were located throughout Australia and prosecuted summarily in Local and Magistrates’ courts by ASIC and the Commonwealth Director of Public Prosecutions.

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