False statements by company directors
– section 85 of the Crimes Act 1958
False Statements By Company Directors is when a director of a corporation publishes a misleading or deceptive statement. They do so in order to deceive the members or creditors of the company.
- A company director sends an untrue email to the members about performance targets being met. When in reality the company is performing badly.
- The CEO of a company fabricates productivity ratings in a letter to creditors in order to secure further investment.
- No false statements were made.
- The Director did not intend to deceive members or creditors.
- The Director had no knowledge the statements were false.
Questions in cases like this
- Were any statements made to members or creditors that were not correct or accurate?
- Did you know the statements were false?
- Was anyone intentionally deceived?
Maximum penalty and court that deals with this chargeThe maximum penalty for this offence is level 5 imprisonment (10 years).
This is a strictly indictable charge which means that your case must be heard in the County Court.
The section that covers this offence is section 85 of the Crimes Act 1958.
“Were false statements made?”
What is the legal definition of False Statements By Company Directors?The Prosecution must show that you are a director or officer of a corporation. And you published a written statement or account which may be misleading or deceptive. And did so with intent to deceive members or creditors of the body corporate.
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