Dishonest use of position

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Written by Richard Mayo, Senior Criminal Lawyer.
Richard has a wealth of experience in corporate crime and has spent time with both state and Commonwealth DPPs.
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The law

It is an offence under the Corporations Act to dishonestly use your position as a director or officer to gain advantage or cause detriment to a company.

What the prosecution must prove - the elements of the offence:

1. That you were a director, officer or employee of the company
2. That you used your position as a director, officer or employee
3. Your use of your position was dishonest according to the standards of ordinary people

Common ways in which this might occur

• You sold, gave away or used company property for the advantage of yourself or friends
• You entered into a non arms-length transaction with the company
• You used the company to pay your personal bills

Possible defence

This matter can sometimes be defended on the basis that the conduct is not dishonest according to the standards of ordinary persons. This is a difficult element for the prosecution to prove.

Maximum penalty

The maximum penalty for this offence is five years imprisonment and/or a $22,000 fine.

This matter is indictable and will be dealt with in the District Court.

For more information:

Contact one of our team of specialist corporate crime lawyers at Armstrong Legal on 9261 4555.