Directors must give information to company
– section 205F of the Corporations Act 2001
This offence means that a director of a company has to give the certain information that is relevant for compliance.
Examples of Directors Must Give Information to Company
- A Director failed to disclose information about a potential conflict of interest
- A Director failed to disclose information about a potential personal interest
What are some of the possible defences to a Directors Must Give Information to Company charge?
- You did not fail to disclose any relevant information
- The information was not relevant for the company’s compliance
There are other possible defences, depending on the circumstances surrounding the alleged offending. Each matter is unique and requires an individual approach and strategy.
Questions that are asked in cases like this:
- What kind of information must be disclosed to the company?
Maximum penalty and Court that deals with this charge
This sort of charge is normally heard in the Magistrate’s Court.
“Did you fail to disclose the relevant information?”
What is the legal definition of Directors Must Give Information to Company?
A director of a company must give the company any information that is relevant for compliance. The company must give the information to each of the other directors of the company within 7 days of receiving it.
The Law
The section that covers this offence is section 205F of the Corporations Act 2001.1
What can you be sentenced to for this charge?
You are likely to receive a fine if found guilty for this offence. However, every offence turns on its particular circumstances.
Other Important Resources
- ASIC: Directors and financial reporting
- Hall & Wilcox: Legal obligations of directors of Australian companies
[1] Corporations Act 2001 – Section 205F
(2) An offence based on subsection (1) is an offence of strict liability.
