Fraudulent changes to ASIC register can lead to company liability

A recent case has highlighted the importance of correcting incorrect information found on a company's public record on the Australian Securities and Investments Commission's (ASIC) register.

In this case, a man represented himself as a sole director, secretary and shareholder of a company by submitting false changes to a company's details on the ASIC register. He then used the ASIC register information to commit fraud. The court found that the company was liable for his actions as they failed to correct the register within a reasonable time of being made aware of his actions This case serves as a cautionary tale for all companies to ensure that their ASIC records are accurate and up-to-date once they are put on notice of incorrect information, or risk being held responsible for a fraudster's actions.