What happens if corporations or individuals breach the CATSI Act?
Under the CATSI Act, there are more penalties and offences but most are based on offences in the Corporations Act. The aim is to support better governance of corporations. For example, the CATSI Act prohibits false or misleading statements being made either to the Registrar, or by an officer or employee of a corporation to its directors, auditors and members. A new civil penalties scheme, based on the Corporation Act, is introduced for serious contraventions of the CATSI legislation. It includes the option for a penalty notice scheme as an alternative to criminal prosecution. The Registrar can ask the Federal Court to declare a contravention has occurred. Under other provisions, directors and officers who breach their duties under the Act may be disqualified from managing corporations. For more information, see the fact sheet Duties of directors and other officers.
