Maximum penalties provide a court with guidance on how to punish criminal behaviour. They restrict the court’s sentencing discretion as the court is unable to order a penalty in excess of the prescribed maximum penalty. The maximum penalty is generally reserved only for the most egregious cases. The existing maximum imprisonment penalties for a number of criminal offences do not currently reflect the seriousness of those offences. The maximum imprisonment penalty for a number of criminal offences in the Corporations Act, ASIC Act and Credit Act have been increased to reflect the seriousness of those offences, and to deter and punish such behaviour as appropriate. The increased penalties are consistent with penalties for similar offences in other jurisdictions. Offences where the maximum term of imprisonment has been increased are listed in the table below. Offences where the maximum term of imprisonment has – been increased Offence provision Current New Brief description imprisonment imprisonment term term Corporations Act 206A(1) 1 year 5 years Disqualified persons are not to manage corporations. 670A(3) 1 year 5 years Documents relating to takeovers, compulsory acquisitions and cannot be misleading or deceptive, or contain omissions, and are required to contain information that should have been included if a new situation has emerged. 708AA(10) 6 months 2 years Right issues that do not need disclosure. 708A(9) 6 months 2 years Defective documents. 792D(1) 6 months 2 years Market licensee is obligated to assist ASIC.
Maximum penalties provide a court with guidance on how to punish criminal behaviour. They restrict the court’s sentencing discretion as the court is unable to order a penalty in excess of the prescribed maximum penalty. The maximum penalty is generally reserved only for the most egregious cases. The existing maximum imprisonment penalties for a number of criminal offences do not currently reflect the seriousness of those offences. The maximum imprisonment penalty for a number of criminal offences in the Corporations Act, ASIC Act and Credit Act have been increased to reflect the seriousness of those offences, and to deter and punish such behaviour as appropriate. The increased penalties are consistent with penalties for similar offences in other jurisdictions. Offences where the maximum term of imprisonment has been increased are listed in the table below. – Offences where the maximum term of imprisonment has been increased Offence provision Current imprisonment term New imprisonment term Brief description Corporations Act 206A(1) 1 year 5 years Disqualified persons are not to manage corporations. 670A(3) 1 year 5 years Documents relating to takeovers, compulsory acquisitions and cannot be misleading or deceptive, or contain omissions, and are required to contain information that should have been included if a new situation has emerged. 708AA(10) 6 months 2 years Right issues that do not need disclosure. 708A(9) 6 months 2 years Defective documents. 792D(1) 6 months 2 years Market licensee is obligated to assist ASIC.
T328482_Explanatory_Materials.docx