CORPORATE AND FINANCIAL REPORTING OFFENCES

Corporate and financial reporting offences are breaches of the Corporations Act 2001 (Cth), which applies in Queensland and across Australia. These laws require companies and their officers to keep proper financial records, prepare and lodge reports with ASIC, and ensure that information provided to regulators, investors, and the public is not false or misleading.

Examples include:

- Failing to keep financial records (s.286).

- Not lodging annual financial reports with ASIC (ss.292–314).

- Directors failing to ensure compliance with reporting and audit obligations (s.344).

- Providing false or misleading information in company documents (s.1308).

- Giving false information to auditors (s.1309).

These offences are treated seriously because accurate reporting underpins investor confidence, protects stakeholders, and maintains the integrity of Australia’s financial markets.

Breaches of the Corporations Act 2001 (Cth) can attract serious consequences. Depending on the nature of the offence, penalties may include:

- Criminal penalties – imprisonment for up to 5 years for serious offences such as knowingly providing false or misleading information (s.1308, s.1309).

- Substantial fines – imposed on both individuals and corporations for failing to keep records (s.286) or lodge reports (ss.292–314).

- Civil penalties – ASIC can seek pecuniary penalties, compensation orders, or disqualification of directors and officers (s.344).

- Administrative action – ASIC may also issue infringement notices or ban individuals from managing corporations.

These penalties reflect how seriously the law treats misconduct that undermines investor confidence and the integrity of Australia’s financial markets.

To establish a corporate or financial reporting offence under the Corporations Act 2001 (Cth), the prosecution must show that:

- A legal duty existed — for example, to keep financial records (s.286) or to lodge annual reports with ASIC (ss.292–314).

- That duty was breached — such as failing to lodge reports, keeping inadequate records, or providing false or misleading information (s.1308, s.1309).

For some offences, this is enough. Many reporting breaches are strict liability offences, meaning the prosecution does not need to prove intent — only that the obligation was not met. However, for more serious offences (like knowingly providing false or misleading information), the prosecution must also prove that the conduct was intentional, reckless, or knowing.

In all cases, the elements must be proven beyond reasonable doubt before a conviction can be secured.

The defences available will depend on the type of offence alleged under the Corporations Act 2001 (Cth).

- Strict liability offences (such as failing to keep records under s.286 or failing to lodge reports under ss.292–314) do not require proof of intent. The only recognised defence is a mistake of fact under the Criminal Code (Cth) s.9.2 — for example, where a director reasonably but mistakenly believed that the company’s report had already been lodged.

- Intent‑based offences (such as providing false or misleading information under s.1308 or false information to auditors under s.1309) require proof of knowledge or recklessness. A defence may be available if you can show you did not know the information was false, that you reasonably relied on professional advice, or that your conduct was not reckless.

- In some cases, broader criminal law defences (such as duress or necessity) may also apply.

Because penalties can include heavy fines, director disqualification, and even imprisonment, obtaining early legal advice is essential to identify and raise the right defence.

A conviction for a corporate or financial reporting offence under the Corporations Act 2001 (Cth) can have serious and lasting consequences beyond the immediate penalties. Individuals may face disqualification from managing corporations, restrictions on acting as a company director, and long‑term damage to their professional reputation.

For companies, a conviction can result in loss of investor confidence, regulatory scrutiny, and reputational harm that may affect business relationships and future opportunities. These consequences highlight the importance of obtaining early legal advice to protect both personal and corporate interests.

At Coral Coast Law, we understand that facing allegations of corporate or financial reporting offences can be stressful and confusing. Our experienced defence lawyers can:

- Assess your case quickly – identifying whether the charges involve strict liability or intent‑based offences, and what the prosecution must prove.

- Advise on possible defences – including whether a mistake of fact or lack of knowledge may apply in your circumstances.

- Protect your interests – by negotiating with ASIC, representing you in court, and working to minimise penalties or avoid conviction where possible.

- Safeguard your future – helping you manage the reputational, professional, and commercial consequences of an investigation or conviction.

We provide clear, practical advice and strong representation to give you the best chance of achieving a favourable outcome.