THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.8 - OFFENCES

SECTION 590   OFFENCES BY OFFICERS OF CERTAIN COMPANIES  

590(1)  [Liability for non-disclosures etc]  

A person who, being a past or present officer of a company to which this section applies:

(a)  does not, so far as the person is capable of doing so, disclose to the appropriate officer all the property of the company, and how and to whom and for what consideration and when any part of the property of the company was disposed of within 10 years next before the relevant day, except such part as has been disposed of in the ordinary course of the business of the company;

(b)  does not deliver up to, or in accordance with the directions of, the appropriate officer:

(i) all the property of the company in the person's possession; or

(ii) all books in the person's possession belonging to the company (except books of which the person is entitled, as against the company and the appropriate officer, to retain possession);

(c)  has, within 10 years next before the relevant day or at a time on or after that day:

(i) fraudulently concealed or removed any part of the property of the company to the value of $100 or more;

(ii) concealed any debt due to or by the company;

(iii) fraudulently parted with, altered or made any omission in, or been privy to fraudulent parting with, altering or making any omission in, any book affecting or relating to affairs of the company;

(iv) by any false representation or other fraud, obtained on credit, for or on behalf of the company, any property that the company has not subsequently paid for; or

(v) fraudulently pawned, pledged or disposed of, otherwise than in the ordinary course of the business of the company, property of the company that has been obtained on credit and has not been paid for;

(d)  fraudulently makes any material omission in any statement or report relating to affairs of the company;

(e)  knowing or believing that a false debt has been proved by a person, fails for a period of one month to inform the appropriate officer of his or her knowledge or belief;

(f)  prevents the production to the appropriate officer of any book affecting or relating to affairs of the company;

(g)  has, within 10 years next before the relevant day or at a time on or after that day, attempted to account for any part of the property of the company by making entries in the books of the company showing fictitious transactions, losses or expenses; or

(h)  has, within 10 years next before the relevant day or at a time on or after that day, been guilty of any false representation or other fraud for the purpose of obtaining the consent of the creditors of the company or any of them to an agreement with reference to affairs of the company or to the winding up;

contravenes this subsection.

590(2)-(4)  (Omitted by No 110 of 1990, Sch 3 (effective 1 January 1991).)

590(5)  [Pawns, pledges etc under sec 590(1)(c)(v)]  

Where a person pawns, pledges or disposes of any property in circumstances that amount to a contravention by virtue of subparagraph (1)(c)(v), a person who takes in pawn or pledge or otherwise receives the property knowing it to be pawned, pledged or disposed of in those circumstances contravenes this subsection.

590(6)  [Property deemed to be held on trust]  

A person who takes in pawn or pledge or otherwise receives property in circumstances mentioned in subsection (5) and with the knowledge mentioned in that subsection shall be deemed to hold the property as trustee for the company concerned and is liable to account to the company for the property.

590(7)  [Onus of proof]  

Where, in proceedings under subsection (6), it is necessary to establish that a person has taken property in pawn or pledge, or otherwise received property:

(a)  in circumstances mentioned in subsection (5); and

(b)  with the knowledge mentioned in that subsection;

the matter referred to in paragraph (b) of this subsection may be established on the balance of probabilities.