adminPERTH. – Gina Rinehart’s private companies have been hit with $130 000 in fines after pleading guilty to repeated breaches of corporate filing requirements.
Magistrate Richard Huston handed down the penalties in the Perth Magistrates’ Court yesterday, describing the failures by three of the iron-ore billionaire’s companies to file annual accounts with the corporate regulator as “blatant and intended breaches” of their requirements.
Hancock Prospecting,
Hancock Minerals and Hope Downs Iron Ore between them pleaded guilty to 13 counts of failing to lodge their annual accounts with the Australian Securities and Investments Commission.
Each charge carried a maximum penalty of $13 750 each, but the magistrate dropped the penalty to $10 000 per charge to reflect that the companies had all eventually pleaded guilty and filed the outstanding accounts.
In handing down his sentence, magistrate Huston said it was important that the penalty acted as a “general deterrent” and reminder to corporate Australia that the filing requirements be met.
“A significant fine should be imposed because of the deliberate nature of the offending and the long delay in the companies eventually complying with the statutory reporting that was expected of each of the companies,” the magistrate said.
Magistrate Huston said “high-profile private companies” should be showing the way by complying with their relevant regulations.
He said the fines should serve as a reminder to the companies and the broader corporate community that there were consequences for failing to comply with the regulations, “particularly when the failure to follow the rules is an intended act, a persistent act, and continue despite reminders from the regulator”.
Hancock Prospecting had failed to lodge accounts for the 2010, 2011 and 2012 financial years while Hancock Minerals and Hope Downs Iron Ore failed to file accounts for the 2008 to 2012 financial years.
The companies had argued unsuccessfully for an exemption from the reporting requirements and did not lodge the accounts while the exemption request was heard.
The outstanding accounts were then filed in 2012 and 2013 after the exemption request was rejected, and ASIC decided to prosecute the companies.
A spokesman for Hancock Prospecting said ASIC had told it at the time it was seeking exemptions from filing that a delay in lodgment was “acceptable”.
“The company was pursued after all the annual returns were filed, so prosecution was not necessary to achieve their filing, and despite the government agency suggesting, during the time a relief application was being made, that it was acceptable to delay such filing as we lawfully sought relief as a private company from having to file,” the spokesman said.
The spokesman also questioned the public benefit from the filing requirements.
“What benefit is there for taxpayers of this government administration requirement for some private companies with the extra costs involved for government agencies?” he said.
“When the government is attempting to bring about policies to alleviate the decline in small business openings, decline in investment in Australia, decline in exploration, and record debt, do such government administrative requirements assist?”
ASIC commissioner Greg Tanzer said in a statement that the financial accounts held important information for shareholders, creditors and the public to help them make informed decisions.
“ASIC will continue to
take enforcement action against companies who fail to meet their financial reporting obligations,” he said. – The Australian.
Online Reporter