Mr Brenton Jeffrey Strauss of Murray Bridge, South Australia has pleaded guilty to acting as an officer of a company while it was under external administration.

Mr Strauss was the former director of Sapphire (SA) Pty Ltd (Sapphire) which was placed in external administration on 14 March 2014.

An ASIC investigation found that on 19 March 2014, Mr Strauss issued a variation to a settlement deed between Sapphire and another company after appointment of an Administrator, advising the other party about a change in payment details.  At the time of issuing the variation to the settlement deed Mr Strauss was not authorised to make decisions affecting the affairs of Sapphire.

On 5 October 2018, Mr Strauss pleaded guilty to the charge under section 437C(1) of the Corporations Act. He was released without conviction and placed on a recognizance in the sum of $1000 to be of good behaviour for 18 months.

The offence was prosecuted by the Commonwealth Director of Public Prosecutions (CDPP).

Background

Mr Strauss was initially charged with two counts of breaching his directors duties in July 2016. Following negotiations between the defendant and the CDPP, Mr Strauss indicated he would plead guilty to a lesser charge of performing or exercising a function or power as an officer of a company under administration, in breach of s437C(1) of the Corporations Act (refer: 16-235MR ASIC brings charges against Murray Bridge grain trader).

Section 437C(1), as in force at the time of the offence, provided that while a company is under administration, a person (other than the administrator) cannot perform or exercise, and must not purport to perform or exercise, a function or power as an officer or provisional liquidator of the company.

In making its decision to commence an investigation, ASIC relied on reports lodged by the Administrator of Sapphire, Mr Anthony Christopher Matthews of Anthony Matthews & Associates.