Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 318

318. (1) Subject to this section, if a director of a company fails to take all
reasonable steps to comply with, or to secure compliance with, or has
knowingly been the cause of any default under, any of the provisions of this
Part (including any of those provisions as applying by virtue of section 1058)
other than Divisions 1 and 2 and section 317, the director contravenes this
subsection.

(2) The penalty applicable to a contravention of subsection (1) is:

   (a)  in a case to which paragraph (b) does not apply-$5,000; or

   (b)  if the offence was committed with intent to deceive or defraud members
        of creditors of the company or creditors of any other person or for
        any other fraudulent purpose-$20,000 or imprisonment for 5 years, or
        both.

(3) In any proceedings against a person for failure to take all reasonable
steps to comply with, or to secure compliance with, the provisions of this
Part relating to the form and content of the accounts or group accounts of a
company by reason of an omission from the accounts or group accounts
(including any of those provisions as applying by virtue of section 1058), it
is a defence if it is proved that the information omitted was immaterial and
did not affect the giving of a true and fair view of the matters required by
Division 4 to be dealt with in the accounts or group accounts, as the case may
be.

(4) In any proceedings against a person for failure to take all reasonable
steps to comply with, or to secure compliance with, or for having knowingly
been the cause of any default under, any of the preceding provisions of this
Part (including any of those provisions as applying by virtue of section 1058)
relating to the accounts or group accounts of a company by reason that the
accounts or group accounts, as the case may be, have not been made out in
accordance with an applicable accounting standard, the onus of proving that
the accounts or group accounts, as the case may be, would not, if made out in
accordance with that accounting standard, have given a true and fair view of
the matters required by Division 4 to be dealt with in the accounts or group
accounts lies on that person.

(5) If, after the end of the period within which any accounts of a company or
any report of the directors of a company is or are required by Division 4, 5
or 6 to be made out, the Commission, by notice in writing to each of the
directors, requires the directors to produce the accounts or report to a
person specified in the notice on a day and at a place so specified, and the
directors fail to produce the accounts or report as required by the notice,
then, in any proceeding for a failure to comply with Division 4, 5 or 6 proof
of the failure to produce the accounts or report as required by the notice is
prima facie evidence that the accounts or report were not made out within that
period.