Officers to report to controller about corporation’s affairs

Offence title:

Officers to report to controller about corporation’s affairs

Act:

429 Corporations Act

Offence:

(1)   In this section: reporting officer, in relation to a corporation in respect of property of which a person is controller, means a person who was:

(a)   in the case of a company or registrable Australian body—a director or secretary of the company or registrable Australian body; or

(b)   in the case of a foreign company—a local agent of the foreign company;

on the control day.

(2)   Where a person becomes a controller of a corporation they must:

(a)   Serve a notice on the corporation that they are the controller; and

(b)   Within 10 days after receipt by the corporation, the reporting officers must make, and submit, a report on the affairs of the company as at the control day; and

(c)    The person must, within one month of receipt of the report;

                                          i.         Lodge a copy of the report, together with any comments, or a note stating there are no comments, as they se fit; and

                                        ii.         Send a copy of the notice, as lodged per i.

                                       iii.         If the person became the controller of the property:

A.     Because of an appointment by debenture holders of the corporation; or

B.     By entering into possession or taking control of the property to enforce a security interest for debenture holders;

And there are trustees for the debenture holders - send to the trustees a copy of the report in i.

Penalty:

50 penalty units.

Summary/Indictable/mixed:

Summary

Jurisdiction:

Local Court

How committed:

(2)(b) The directors fail to produce a report in accordance with the requirements in the notice served by a receiver.