Penalties That Can Apply
The penalties for breaches of the Corporations Act 2001 (Cth) and other regulations by directors of companies in Australia can vary depending on the specific circumstances and seriousness of the breach.
The penalty units for these breaches are as follows:
- Criminal sanctions, such as fines and imprisonment: The maximum penalty for an individual convicted of an offence under the Corporations Act 2001 (Cth) can be up to 15 years imprisonment and/or fines.
- Civil penalties: The maximum penalty for a breach of the Corporations Act 2001 (Cth) can be up to 5,000 penalty units or three times the benefit for individuals, and which is the greater, up to 50,000 penalty units or three times the benefit or 10% of annual turnover, capped at 2.5 million penalty units for companies.
- Disqualification from managing corporations: This can be imposed for a specific period of time, as determined by the court.
- Orders to compensate the company or third parties for losses or damage caused by the breach: The amount ordered will depend on the specific circumstances of the case.
- Orders requiring the director to pay a penalty to the Commonwealth: The amount ordered will depend on the specific circumstances of the case.
- Orders for rectification of any breach of the law: The specific measures ordered will depend on the circumstances of the case.
- Orders for the return of any gain made from a contravention of the law: The amount ordered will depend on the specific circumstances of the case.
- Orders for the payment of compensation to any person who has suffered loss or damage because of the director’s conduct: The amount ordered will depend on the specific circumstances of the case.
ASIC Fines and Penalties – Breaches of Australian Govenment Laws
As of 1st Jan, 2023, one penalty unit is $275.
It is important to note that the penalties and fines mentioned above are the maximums and the actual fines and penalties may be lower depending on the circumstances of each case.
Also, laws and regulations are subject to change updated regularly.
It’s important to note that the specific requirements can vary depending on the specific situation. It’s always best to consult your professional team if you have any doubts or questions about these obligations. This is only intended to inform, not advice.