ASIC may cause prosecution to be begun

Offence title:

ASIC may cause prosecution to be begun

Act:

49 Australian Securities and Investments Commission Act

Offence:

(1)   This section applies where:

(a)   as a result of an investigation; or

(b)   from a record of an examination;

conducted under this Part, it appears to ASIC that a person:

(c)    may have committed an offence against the corporations legislation; and

(d)   ought to be prosecuted for the offence.

(3)   If:

(a)   ASIC, on reasonable grounds, suspects or believes that a person can give information relevant to a prosecution for the offence; or

(b)   the offence relates to matters being, or connected with, affairs of a body corporate, or to matters including such matters;

ASIC may, whether before or after a prosecution for the offence is begun, by writing given to the person, or to an eligible person in relation to the body, as the case may be, require the person or eligible person to give all reasonable assistance in connection with such a prosecution.

Penalty:

3 months imprisonment

Summary/Indictable/mixed:

Summary

Jurisdiction:

Local, District or Supreme Court

How committed:

A co-director who may possess information cannot be present, unless specific authority is granted, when another director is making disclosures.

Important note:

 s.63(3):  A person must not fail to comply with a requirement made under subsection 21(1) or 29(2), paragraph 24(2)(a) or subsection 49(3) or 58(1), (2) or (4).

Penalty: 3 months imprisonment