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False statements by company directors

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.
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 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 charge

The maximum penalty for False Statements By Company Directors (s85 of the Crimes Act 1958) 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.
 
What can you be sentenced to for this charge?
In severe cases where the extent of the damage caused by the false statement is significant, you may get a prison sentence if found guilty. In less serious cases, you could get fine.