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Workplace health and safety
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Changes to Queensland's laws impose increased penalties for workplace offences.

Read our update.

 
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COURT HANDS DOWN INSOLVENT TRADING PENALTIES
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In ASlC's civil penalty action against Messrs Bernard Plymin, John Elliott
and William Harrison, the directors of Water Wheel Holdings Limited and
Water Wheel Mills Pty Ltd (the companies), the Court made formal declarations
that each of the directors had contravened the insolvent trading provisions of the
Corporations Law.

'The outcome reinforces the need for directors to exercise reasonable care
that their companies will be able to pay for goods and services contracted
in the normal course of business. Failure to do so can cause serious
financial hardship to families and small businesses supplying those goods
and services', ASIC Chairman Mr Knott said.

In relation to Mr Plymin, the Court ordered that he:

- be banned for 10 years from managing a corporation;
- pay compensation of $1,428,000 to the companies (jointly with Mr
Elliott);
- pay pecuniary penalties of $25,000, and
- pay ASIC's taxed costs (jointly with Mr Elliott, but neither is obliged
to pay more than 80 per cent of the total).

In relation to Mr Elliott, the Court ordered that he:

- be banned for four years from managing a corporation;
- pay compensation of $1,428,000 to the companies (jointly with Mr
Plymin);
- pay pecuniary penalties of $15,000, and
- pay ASIC's taxed costs (jointly with Mr Plymin, but neither is obliged
to pay more than 80 per cent of the total).

In relation to Mr Harrison, the Court ordered that he:

- be banned for seven years from managing a corporation; and
- pay compensation of $300,000 to the companies.

The orders against Mr Harrison for compensation reflected a settlement
reached with ASIC early in the litigation. In recognition of Mr Harrison's
cooperation and contrition, ASIC did not seek compensation and financial
penalties from him exceeding $300,000. However, Justice Mandie viewed Mr
Harrison's 'serious dereliction of duty' as requiring a more lengthy
banning period than had been recommended by ASIC. As part of the
settlement with ASIC, Mr Harrison paid the agreed compensation amount to
ASIC during the trial, pending a final decision by the Court. The amount
paid represents a large portion of Mr Harrison's available means, which
will now benefit creditors.

 
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New Banking Code of Practice released
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The Australian Bankers Association has released its revised Code of Banking Practice, replacing the 1993 version of its charter of customer rights. For the first time it will apply to small business.

Download the Code