Corporate Advisory Update – December 2016

December, 2016

In the media

Government response to the final report of the review of the small amount credit contract laws

The Turnbull Government has today released its response to the final report of the independent review of the small amount credit contract (SACC) laws.

The final report has made a number of recommendations designed to increase financial inclusion and reduce the risk that consumers may be unable to meet their basic needs or may default on other necessary commitments.

The full response can be viewed here: Government response to the final report of the review of the small amount credit contract laws

Former listed public company director found guilty of dishonest conduct

Former TZ Limited director, Andrew John Sigalla, was found guilty on 24 counts of dishonest conduct, following a 22-day trial before a jury in the Supreme Court of New South Wales.

The action was brought under section 184(2) of the Corporations Act 2001, following an investigation by ASIC that commenced in 2009.

Company director convicted for making a false statement in a document lodged with ASIC

Mr Sam Grace, a Sydney based company director, has pleaded guilty and was convicted of contravening section 1308(2) of the Corporations Act 2001 for lodging a document with ASIC that contained a false or misleading statement.

Mr Grace signed and lodged ‘ASIC Form 6010 – Application for voluntary deregistration of a company’, to deregister a company that was in fact a party to proceedings in the New South Wales Civil and Administrative Tribunal.

He was convicted and given a recognisance release order of $500 to be of good behaviour for twelve months.

In Practice and Courts

Corporations Amendment (Crowd-sourced Funding) Bill 2016

The Bill enables unlisted public companies with less than $25 million in assets and annual turnover to facilitate crowd sourced equity funding.

These companies will be able to raise up to $5 million in any 12 month period through crowdfunding platforms.

Small companies that become public companies to use crowdfunding will be given a transition period of up to five years during which they will be eligible for exemptions from certain corporate governance and reporting requirements.

ASX’s admission requirements for listed

On 2 November 2016, ASX released its Response to Consultation on updating ASX’s admission requirements for listed entities, together with the final Listing Rule and Guidance Note changes outlined in the Response to Consultation.

The changes are mostly consistent with Consultation Paper 155, but show signs of ASIC being a little more flexible than the Consultation Paper.

Some of these changes are already operating, while others are will come into effect on 19 December 2016.

Final Listing Rule changes can be viewed below:

Cases

Deloitte Services Pty Ltd v HBO EMTB Interiors (NSW) Pty Ltd (In Liquidation) [2016] NSWSC 1597

Facts

The Court’s Decision

Contact Mills Oakley

To find out more about any of the information in this update, please do not hesitate to contact us, here

 

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