Records management – are you at risk?

While records management may not be the top of everyone’s priority list in the workplace, it is one of the key responsibilities of the Company Board. Not only does it underpin good corporate governance, it is integral gaining public trust and confidence in companies and the people who run them.

The Corporations Act 2001 (Cth) lists records management as a key responsibility directors and company secretaries to which they are held accountable by the Australian Securities and Investments Commission (ASIC) who has the power to prosecute.

Non-complaint records management can potentially expose company directors of corporations to penalties of up to a 5-year jail term and a $200,000 financial penalty.

Some examples of recent ASIC enforcement activities include:

• In 2014 a Perth director was sentenced to 14 months in jail after pleading guilty to three counts of providing false and misleading information to the Australian Securities Exchange.
• In 2018 a NSW former director and CFO was sentenced to 3 years jail after he was found guilty of intentionally falsifying financial documents.
• A Queensland director is currently on bail awaiting sentence for providing false information to company auditors.

Three ways to make sure you are protected

Is your company protected? Not sure? Get in contact with the Breadcrumb team we’d love to chat!