ASIC prosecutes 73 individuals for failing to assist registered liquidators

ASIC has successfully prosecuted 73 people in the period from 1 January 2022 to 30 June 2022 for failing to assist registered liquidators in their investigations.

ASIC took action against company officers and other related individuals who failed to provide registered liquidators with access to company books and to submit a report on company activities and property (ROCAP).

ASIC Commissioner Sean Hughes said, ‘In the six months to 30 June 2022, ASIC secured over $340,000 in fines and costs against those who failed in their obligations to assist liquidators.

‘Helping liquidators by providing company books and ROCAPs in a timely manner is a fundamental obligation of directors and important in helping liquidators realise the best possible outcomes for creditors. Where company officers and other individuals fail to meet this obligation, ASIC will take action to ensure liquidators are empowered to complete their work. Those who fail to help liquidators risk strict financial penalties,’ concluded Commissioner Hughes.

Before ASIC commences prosecution action, individuals are given an opportunity to provide registered liquidators access to company books and a ROCAP to avoid prosecution action.

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

Background

ASIC offers registered liquidators the ability to report misconduct to its Liquidator Assistance Program. Company officers and others involved in conduct that impedes registered liquidators are strongly encouraged to comply with their statutory obligations.

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