Victorian motorcycle transport company Motorcycle Express Australia Pty Ltd (Motorcycle Express) has been convicted for failing to produce books about its affairs to ASIC.

Motorcycle Express was the subject of a phoenix surveillance activity in December 2016.  As part of its surveillance activities, ASIC served a Notice on Motorcycle Express on 6 January 2017 to produce books about its affairs on or by 23 January 2017. 

After receiving no response from the company, ASIC subsequently served a second Notice on Motorcycle Express on 3 February 2017 to produce books about its affairs on or by 14 February 2017. Motorcycle Express failed to produce the books by the compliance date.

On 28 September 2017, Motorcycle Express director, Mrs Jannine Fergusson entered a guilty plea on behalf of the company on two counts of failing to provide books listed in a Notice to ASIC.

Motorcycle Express was convicted in the Magistrates' Court of Victoria and fined $500.

The Commonwealth Director of Public Prosecutions prosecuted the matter.

Background

ASIC has various coercive powers under the Australian Securities and Investments Commission Act 2001 (ASIC Act) to allow it to perform or exercise its functions and powers, including the service Notices on companies to produce books.

Failing to comply with a Notice is a criminal offence under s.63 of the ASIC Act and carries a maximum penalty of 100 penalty units or imprisonment for 2 years, or both.