Thursday 19 October 2006 – LAWFUEL – Law News, Law Jobs – The Australian Securities and Investments Commission (ASIC) has launched a national surveillance initiative to ensure that company officers banned from managing companies are complying with disqualification requirements and refraining from being involved in the management of companies.
The focus of the campaign will be on company officers who have been disqualified as a result of being involved with two or more failed companies within a seven year period. ‘Individuals who continue to manage corporations or remain involved in making decisions that affect a business, while disqualified, are breaking the law’, ASIC’s Executive Director of Consumer Protection, Mr Greg Tanzer, said.
‘ASIC will directly contact banned individuals to ensure they are complying with their disqualification orders and will conduct further surveillances if it has concerns they may be acting in breach of the law’, Mr Tanzer said. ASIC undertook a similar campaign in 2005, aimed at bankrupts managing corporations, which saw surveillance activity undertaken in relation to 112 individuals. ‘Anyone continuing to act in deliberate breach of their disqualification will be the subject of criminal proceedings’, Mr Tanzer said.
A full list of banned individuals can be found on ASIC’s consumer website, www.fido.gov.au Complaints about suspected disqualified individuals managing corporations can be lodged with ASIC via our website, www.asic.gov.au, or by writing to any of our capital city offices across Australia: Manager National Assessment & Action ASIC GPO Box 9827 IN YOUR CAPITAL CITY Background Under section 206F of the Corporations Act, ASIC may disqualify a person from managing a corporation for up to five years provided a person has been the director of two or more failed corporations within seven years that have been wound up and their liquidator has lodged a report with ASIC regarding the corporation’s inability to pay its debts.
Since 1 July 2005, ASIC has banned 40 company officers under this section of the law. The offence of managing a corporation while disqualified carries a maximum penalty of $5,500 or imprisonment for one year or both. For further information contact: Mr Greg Tanzer Executive Director, Consumer Protection Telephone: 07 3867 4704 Mobile: 0411 549 144 Emma Forehan ASIC Media Unit Telephone: 03 9280 3354 Mobile: 0409 702 310