A stark warning for directors and what can happen

The case of tech company Getswift is a stark reminder of the pitfalls that can happen when you become a company director.

Getswift was a public listed company that floated on the Australian stock exchange.

It was not a private company.

It was handed a 15 million penalty for making misleading and deceptive statements.  It also was found it failed to disclose information as it was required to do, on 22 occasions.  The court in 2021 was damming in its condemnation of this behaviour.

The judge in this case stated “general deterrence in a serious case such as the present, is of very real importance.  Getswift’s size and financial position, the extent of the contraventions and the leading roles of executive directors are facts which support the need for a penalty which reflects the courts disapproval of conduct of this kind”.

Two directors were personally fined and banned from being directors for several years.

This case is a timely reminder of the obligations of a director of a public company, especially when trying to raise funds through the issuing of shares.

If anyone is a director of either a public or private company, and they feel uncomfortable about how the company is trading, then email us at reception@culletonlawyers.com.au to have confidential chat with one of our team.