A former company director, GD, has been sentenced to a three-year good behaviour bond and a $10,000 recognizance. He pleaded guilty to a charge of making a false or misleading statement to ASIC (Australian Securities and Investments Commission) on August 7, 2023.
GD was a director of Sapphire Freighters Pty Ltd, a long-haul trucking business based in Melbourne, Victoria. On July 6, 2021, he applied to ASIC for the voluntary deregistration of Sapphire, stating in the application that the company was not involved in any current legal proceedings. However, the Fair Work Ombudsman requested ASIC to postpone the deregistration of Sapphire as they had ongoing legal proceedings against GD. These legal proceedings were related to his failure as Sapphire’s director to comply with a compliance notice concerning employee entitlements.
GD charged with breaching section 1308(1) of the Corporations Act 2001 (Cth), which is an offense that carries a maximum penalty of 5 years imprisonment.
The case highlights the legal consequences of making false or misleading statements to regulatory authorities such as ASIC. Read the full ASIC media release here.