ASIC prosecutes company officers

The Australian Securities and Investments Commission has successfully prosecuted 140 company officers across the nation over the last three months, including two from Western Australia.

Western Australia's Compower-Aces Engineering Services Ltd were fined $1,100, while Janet Irvine Morrison was given a good behaviour bond.

The full text of a company announcement is pasted below

The Australian Securities and Investments Commission (ASIC) announced today the successful prosecution of 140 company officers over the last three months. As a result, fines and costs totalling more than $337,026 were imposed.

These prosecutions, concerning 269 contraventions of the Corporations Act, follow complaints received from the general public and business community. ASIC took action over the failure of company officers to assist liquidators and administrators in the administration of their failed companies. ASIC also took action in relation to companies that failed to update ASIC registers with the addresses of their companies and company officers, in an attempt to hide from creditors.

ASIC's Executive Director of Consumer Protection, Mr Greg Tanzer said this was an important aspect of ASIC's work and showed ASIC focused on the conduct of a range of businesses and individuals operating at various levels.

'The requirements of company officers are important and necessary to protect the interests of individuals, small businesses and creditors. The failure of directors to fulfil their responsibilities generally hurts creditors that have dealt with the company which is why we pursue company directors who don't do the right thing.

'ASIC will take action against company officers who hamper the role of a liquidator in assessing how much the failed company might be able to return to creditors. Where company officers are uncooperative and refuse to provide information on the company's finances and history, ASIC will step in and take the necessary action', Mr Tanzer said.

These matters were prosecuted summarily before Local and Magistrates Courts across Australia and is not intended as an exhaustive list of all ASIC actions since the commencement of the financial year.

Information relating to all of ASIC's enforcement activities are contained in individual media releases which can be found on ASIC's website.