Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 1317E

             (1)  If a Court is satisfied that a person has contravened 1 of the following provisions, it must make a declaration of contravention:

                     (a)  subsections 180(1) and 181(1) and (2), 182(1) and (2), 183(1) and (2) (officers' duties);

                     (b)  subsection 209(2) (related parties rules);

                     (c)  subsections 254L(2), 256D(3), 259F(2) and 260D(2) (share capital transactions);

                     (d)  subsection 344(1) (requirements for financial reports);

                     (e)  subsection 588G(2) (insolvent trading);

                      (f)  subsection 601FC(5) (duties of responsible entity)

                     (g)  subsection 601FD(3) (duties of officers of responsible entity)

                     (h)  subsection 601FE(3) (duties of employees of responsible entity)

                      (i)  subsection 601FG(2) (acquisition of interest in scheme by responsible entity)

                      (j)  subsection 601JD(3) (duties of members)

                     (ja)  subsection 674(2), 674(2A), 675(2) or 675(2A) (continuous disclosure);

                     (jb)  section 1041A (market manipulation);

                     (jc)  subsection 1041B(1) (false trading and market rigging--creating a false or misleading appearance of active trading etc.);

                     (jd)  subsection 1041C(1) (false trading and market rigging--artificially maintaining etc. market price);

                     (je)  section 1041D (dissemination of information about illegal transactions);

                     (jf)  subsection 1043A(1) (insider trading);

                     (jg)  subsection 1043A(2) (insider trading);

                     (k)  subclause 29(6) of Schedule 4.

These provisions are the civil penalty provisions .

Note:          Once a declaration has been made ASIC can then seek a pecuniary penalty order (section 1317G) or (in the case of a corporation/scheme civil penalty provision) a disqualification order (section 206C).

             (2)  A declaration of contravention must specify the following:

                     (a)  the Court that made the declaration;

                     (b)  the civil penalty provision that was contravened;

                     (c)  the person who contravened the provision;

                     (d)  the conduct that constituted the contravention;

                     (e)  if the contravention is of a corporation/scheme civil penalty provision--the corporation or registered scheme to which the conduct related.