THE CORPORATIONS LAW

CHAPTER 9 - MISCELLANEOUS

PART 9.4B - CIVIL CONSEQUENCES OF CONTRAVENING CIVIL PENALTY PROVISIONS

SECTION 1317E   DECLARATIONS OF CONTRAVENTION  

1317E(1)  (Power to make declaration)  

If a Court is satisfied that a person has contravened 1 of the following provisions, it must make a declaration of contravention:

(a)  subsections 180(1) and 181(1) and (2), 182(1) and (2), 183(1) and (2) (officers' duties)

(b)  subsection 209(2) (related parties rules)

(c)  subsections 254L(2), 256D(3), 259F(2) and 260D(2) (share capital transactions)

(d)  subsection 344(1) (requirements for financial reports)

(e)  subsection 588G(2) (insolvent trading)

(f)  subsection 601FC(1)

(g)  subsection 601FD(1)

(h)  subsection 601FE(1)

(i)  section 601FG

(j)  subsection 601JD(1).

These provisions are the civil penalty provisions .

Note:

Once a declaration has been made ASIC can then seek a pecuniary penalty order (section 1317G) or a disqualification order (section 206C).

1317E(2)  (Content of declaration)  

A declaration of contravention must specify the following:

(a)  the Court that made the declaration

(b)  the civil penalty provision that was contravened

(c)  the person who contravened the provision

(d)  the conduct that constituted the contravention

(e)  the corporation or registered scheme to which the conduct related.