Falsification of Books

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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 conceal, destroy or falsify the books of a company.

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

1. That you are an officer, employee or member of the company, or you used to be any of these
2. That you engaged in specific acts or omissions
3. That your conduct resulted in the concealment, destruction, mutilation or falsification of any of the securities of the company or books affecting or relating to the company

A company’s books can include any record of information, no matter how it is stored and any document or register. This is a very broad definition.

It must be shown that you caused the destruction etc. recklessly. This means that you were aware of the risk that your actions could result in the destruction but you nevertheless took that risk.

Common ways in which this might occur

You took any of the company’s documents home with you and intentionally didn’t return them or threw them out.

You altered or deleted computer records.

You crossed out signatures or signed a document in someone else’s place or name.

Possible defences

If you can show that you were not aware of the risk that the documents would be destroyed etc. you will be able to defend the charge. This may be the case where you accidentally deleted or disposed of books of the company.

Maximum penalty

The maximum penalty for this offence is two years imprisonment and/or an $11,000 fine.

Which court is likely to hear the matter

This matter is summary and will be dealt with in the Local Court.

For more information:

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