Making an example of wrongdoing: Penalty orders against ASX listed company and its director

This week's TGIF considers a decision in which ASIC sought significant penalty orders against a listed public company and its director for misleading and deceptive statements in a prospectus, non-disclosure to the ASX and breach of directors duties.

BACKGROUND

Sino Australia Oil and Gas Limited (Company) is the Australian holding company of a Chinese operating company which claims to provide oil and gas recovery services in China.

In 2013, the Company issued a series of Prospectuses for an initial public offering on the Australian Stock Exchange (ASX), all of which were signed by the former executive director, managing director and chairman of the company (Director). The Company was officially listed on the ASX in December 2013.