ASIC will step up its national campaign to prevent disqualified company directors from managing other companies following an investigation into 56 directors who were banned from the regulator.
ASIC's nationwide investigation was conducted over the last six months. The directors had been disqualified by the corporate regulator since 2003.
"The early results of this initiative have shown that most individuals abide by the disqualification and are no longer involved as directors of companies or otherwise in a management role," ASIC deputy executive director of consumer protection Delia Rickard said.
"At the same time, we have identified some who have disregarded their disqualified status and breached the law," ASIC deputy executive director of consumer protection."
As a result of these breaches, ASIC is preparing cases for the Commonwealth Director of Public Prosecutions.
Under the Corporations Act, ASIC can ban a person for five years from managing a company, if they have been the director of two or more failed companies within seven years.
