Directors to help administrator

Offence title:

Directors to help administrator

Act:

438B Corporations Act

Offence:

(1)   As soon as practicable after a company goes into administration, each director must:

(a)   Deliver to the administrator the books of the company, other than those the director is entitled, as against the company and administrator, to retain; and

(b)   If the director knows where other books are, tell the administrator.

(2)   Within 5 days of administration, or longer in the administrator allows, the director is to give to the administrator an approved report of the company’s business, property, affairs and finances.

(2A) The administrator must, within 5 business days after receiving a report under subsection (2), lodge a copy of the report.

(3)   A director of a company under administration must:

(a)   Attend on the administrator; and

(b)   Give assistance to the administrator about the company’s business, property, affairs and finances;

As the administrator reasonably requires.

Penalty:

(1), (2), (2A) and (3) - 120 penalty units.

Summary/Indictable/mixed:

Summary

Jurisdiction:

Local Court

How committed:

(1)   Each director fails to deliver to the administrator the books of the company.

(2A) The directors fail, within 5 days of the commencement of the administration, a report in appropriate form, about the company’s business, property, affairs and financial circumstances.

(2)   The administrator must, within 5 business days after receiving a report under subsection (2), lodge a copy of the report.

(3)   The director of a company in administration fails to attend on the administrator and give such information about the company’s business, property, affairs and financial circumstances, when and as reasonably required.

Important note:

Defence: reasonable excuse