ASIC prosecutes 78 individuals for failing to assist liquidators
The corporate regulator undertook enforcement action against company officers and other individuals who failed to provide important records and reports to registered liquidators.
In a recent update, ASIC said it prosecuted 78 individuals in the first six months of the year for failing to assist registered liquidators.
“These enforcement actions followed the failure of company officers and other individuals to provide registered liquidators with access to company books and submit a report on company activities and property (ROCAP),” said ASIC.
ASIC deputy chair Sarah Court noted between 1 January and 30 June 2024, ASIC prosecuted 78 individuals for 146 offences under the Corporations Act for failing to assist liquidators, with fines of more than $430,000 imposed.
“It is important that individuals assist liquidators by meeting their statutory obligations to minimise the impact of a company’s failure on creditors,” said Court.
“ASIC continues to prosecute those who frustrate the winding up of a company by not submitting reports and providing company books required.”
The individuals involved were prosecuted summarily in Local and Magistrates’ Courts by ASIC and the Commonwealth Director of Public Prosecutions, the corporate regulator said.
According to Court, the enforcement action follows the significant jump in insolvencies over the past 12 months.
Total insolvencies for the 2023–24 income year were almost 40 per cent higher than the previous 2022–23 income year, with 11,049 companies entering external administration or having a controller appointed.
In the June quarter alone, there were a total of 3,301 insolvencies, a 38 per cent increase from the same period last year.
ASIC said that before undertaking a prosecution, it gives individuals an opportunity to comply with their statutory obligations to assist registered liquidators and avoid prosecution.
“ASIC will then take enforcement action if individuals continue to prevent liquidators from having access to company books and ROCAP,” it said.
“Registered liquidators can report misconduct via the Liquidator Assistance Program.”
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