Inducement to be appointed liquidator etc. of company

– section 595 of the Corporations Act 2001

Inducement to Be Appointed Liquidator etc. of Company
Inducement to Be Appointed Liquidator etc. of Company is when you bribe or influence someone else so that you can become liquidator, administrator, or trustee of a company. Or so that you can receive or manage company property. Or to prevent another person from getting any of these roles.

Examples of Inducement to Be Appointed Liquidator etc. of Company
  • A friend of the CEO of a company pays the CEO in cash so that he can become Trustee of the company.
  • A manager in a company offers the Director a new car so that she can manage company property.
  • A manager in a company agrees to pay another manager $10,000 to prevent someone else from becoming an administrator.
What are some of the possible defences to a charge of Inducement to Be Appointed Liquidator etc. of Company?
  • You did not induce anyone.
  • You did not induce anyone to secure any roles with a company.
  • You secured your position only on your merits.
  • You were mistaken about the communication with the person who you are alleged to have induced.

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
  • Did you give or offer to give anyone anything so that you could get a job in the company?
  • How did you get your position?
  • Were you involved in preventing someone from obtaining a position?
  • Could there have been a misunderstanding in the course of a communication which led to you securing a position?

Call Doogue + George

Penalty and court that deals with this charge

The maximum penalty for this type of offence is 30 penalty units1 and is dealt with in the Magistrates court. This means that you can be fined up to $4,956.602 if found guilty of an offence under this provision.
 

“Did you offer a gift to get your position?”

 

What is the legal definition of Inducement to Be Appointed Liquidator etc. of Company?

A person gives or offers to give something to another person to secure a role as liquidator or administrator or trustee of a company. Or to receive or manage company property. Or to prevent another person from securing any of these roles.
 

Legislation

The section that covers this offence is section 595 of the Corporations Act 2001.3

 


 

[1] http://www5.austlii.edu.au/au/legis/cth/consol_act/ca2001172/sch3schedule.html
[2] The value of each penalty unit will change on 30 June 2020.
[3] [1] Corporations Act 2001 – Section 595

(1) A person must not give, or agree or offer to give, to another person any valuable consideration with a view to securing the first-mentioned person’s own appointment or nomination, or to securing or preventing the appointment or nomination of a third person, as:
(a) a liquidator or provisional liquidator of a company; or
(b) an administrator of a company; or
(c) an administrator of a deed of company arrangement executed, or to be executed, by a company; or
(d) a receiver, or a receiver and manager, of property of a company; or
(e) a trustee or other person to administer a compromise or arrangement made between a company and any other person or persons.
(2) An offence based on subsection (1) is an offence of strict liability.