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18-039MR Company convicted for failing to produce books to ASIC
Sydney labour hire company MJC Project Group Pty Ltd (MJC Project Group) has been convicted for failing to produce books about its affairs to ASIC.
MJC Project Group was the subject of a phoenix surveillance activity in February 2017. As part of its surveillance activities, ASIC served a Notice on MJC Project Group on 14 February 2017 to produce books about its affairs on or by 24 February 2017. Before the compliance date, MJC Project Group advised ASIC that it had possession of the books listed in the Notice, but required more time to comply.
ASIC subsequently served a second Notice on MJC Project Group on 11 April 2017 to produce books about its affairs on or by 21 April 2017. MJC Project Group failed to produce all the books requested by the compliance date.
On 5 February 2018, MJC Project Group director, Mr Thomas David Jackson entered a guilty plea on behalf of the company for failing to provide books listed in the Notice to ASIC.
MJC Project Group was convicted in the Southport Magistrates Court and fined $500.
The Commonwealth Director of Public Prosecutions prosecuted the matter.
ASIC has various coercive powers under the Australian Securities and Investments Commission Act 2001 (ASIC Act) to allow it to perform or exercise its functions and powers, including the service Notices on companies to produce books.
Failing to comply with a Notice is a criminal offence under s.63 of the ASIC Act and carries a maximum penalty of 100 penalty units or imprisonment for 2 years, or both.