The companies incorporated under the Corporations Act 2001 are required to notify the Australian Securities and Investment Commission (ASIC) of any changes. Furthermore, there are severe repercussions for lodging a document with ASIC containing a false or misleading statement.

Recently, Mr Grace, a Sydney-based company director of Grace Enterprises (NSW) Pty Ltd, was convicted of contravening section 1308(2) of the Corporations Act 2001 for lodging a document with ASIC that contained a false or misleading statement. As a result of the conviction, Mr Grace was automatically disqualified from managing corporations for 5 years.

ASIC found that Mr Grace signed and lodged ‘ASIC Form 6010 – Application for voluntary deregistration of a company’, to deregister Grace Enterprises (NSW) Pty Ltd, declaring that the company was not a party to ongoing legal proceedings. This was false. Mr Grace knew that the company was a party to ongoing legal proceedings before the NSW Civil and Administrative Tribunal at the time.

ASIC Commissioner, Mr Greg Tanzer emphasised that “where a director deregisters a company knowing it is party to ongoing legal proceedings, it unfairly prejudices another person’s legal rights. Where a director fails to act honestly ASIC will hold those directors personally accountable by taking strong enforcement action”.

If you require assistance with updating your company’s details or lodging an ASIC statement please contact us at The Quinn Group on (02) 9223 9166 or submit an online enquiry form today. Our team of lawyers and accountants will be able to assist you with all your tax and ASIC requirements.