Inducement to be appointed liquidator etc. of company
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 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.
“Did you offer a gift to get your position?”
LegislationThe section that covers this offence is section 595 of the Corporations Act 2001.
- 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.
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?
The maximum penalty for Inducement to be Appointed Liquidator etc. of Company (s595 of the Corporations Act 2001) is 30 penalty units1. This means that you can be fined up to $4,956.602 if found guilty of an offence under this provision.
 The value of each penalty unit will change on 30 June 2020.