Between 1 July to 31 December 2021, ASIC prosecuted 104 company officers and related individuals for failing to assist registered liquidators.

The prosecutions took place in local and magistrates’ courts and were carried out by ASIC and the Commonwealth Director of Public Prosecutions. 

Company officers and others involved in company management have an obligation to assist registered liquidators by providing a Report on Company Activities and Property (ROCAP) as well as books and records. When company officers fail to meet their obligations, registered liquidators can request ASIC’s assistance to ensure they can properly carry out their investigations, realise assets to pay outstanding money owed to creditors and employees and report any findings of misconduct to ASIC.

ASIC Commissioner Sean Hughes said, ‘ASIC expects that company officers will always assist registered liquidators in their investigations, as they are required to under law. If they don’t comply, then ASIC will prosecute them. It is crucial that liquidators receive the assistance they need, so that they can accurately report to creditors about the circumstances and financial positions of the companies they are investigating.’

The prosecutions resulted in fines and costs totaling $282,383.00.

Background

ASIC’s Liquidator Assistance Program provides support to registered liquidators appointed across a range of administration types.