ASIC Takes Down 8 Directors, Four for Recordkeeping

February 8, 2007: ASIC is sending a clear message to business: maintain you financial records.

Poor record keeping was amongst the reasons ASIC has given for the disqualification of eight directors by the Australian Securities and Investments Commission. Besides records and book keeping, ASIC noted a failure to record transactions and trading while insolvent.

The volley of disqualifications is a sharp reminder to business to comply with trade regulations and also have the systems to prove financial decisions downstream.

In a press statement today, ASIC Deputy Executive Director of Consumer Protection, Delia Rickard, said company directors have important responsibilities to uphold and those that defy their responsibilities would be removed from the industry.

She added “ASIC promotes and is a facilitator of honesty and fairness in business and will act to protect consumers, investors and creditors.”

All the companies are small to medium enterprises from the health food, construction, manufacturing and architecture/engineering sectors.

ASIC says the directors have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decisions.

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