Director Cleans Bank Account
Following an investigation by the Australian Securities and Investments Commission (ASIC), the NSW DPP recently obtained a conviction against the director of a cleaning company (Company) for a breach of section 590(1)(c)(i) of the Corporations Act 2001 (Cth.).
Section 590(1)(c)(i) provides, relevantly, that it is an offence where: –
590(1) A person who, being a past or present officer or employee of a company to which this section applies:
(c) has, within 10 years next before the relevant day or at a time on or after that day:
(i) engaged in conduct that resulted in the fraudulent concealment or removal of any part of the property of the company to the value of $100 or more.
Following the liquidation of the Company on about 6 November 2013, the director failed to disclose to the Liquidator the existence of a bank account containing funds belonging to the Company. The Director then proceeded to withdraw funds from the bank account, in the amount of approximately $2,500
The Director’s sentence which was recently handed down in the Local Court of New South Wales included a two (2) year good behaviour bond, a fine of $500 and a reparation order repay to the Liquidator the funds that had been fraudulently removed from the bank account.
In a recent press release, ASIC has confirmed that the Director has also been disqualified from managing a corporation until 2022.
For more information, please contact ERA Legal.
- ERA Legal helps a favoured return (part 2)
- May the enforcement be with you: The State Debt Recovery Act 2018 (NSW)
- Trust your limitations: Time limits for bringing proceedings for breach of fiduciary obligations
- A little or a Lot: costs orders in proceedings involving Owners Corporations
- Preliminary discovery: not enough information to commence a proceeding?
- Litigation Funding: What the court will consider when determining an application under section 477(2B)
- PPSA: when the grantor registers a security interest...over itself
- Unfair Contracts regime enforced by Federal Court
- PPSA - the 20 business day rule: when will the court grant an extension of time to register?
- Voidable transactions - the one who got delay