Have you been charged with Good Faith, Use of Position and Use of Information as criminal offence?

What does it mean to be charged with good faith, use of position and use of information as a criminal offence?

Section 184 of the Corporations Act 2001 establishes serious criminal offences for directors, officers, and employees of corporations who act dishonestly or recklessly in discharging their duties.

This legislation addresses conduct that undermines the good faith, proper use of position, and responsible use of information entrusted to individuals in these roles. The law is designed to ensure that corporate leadership acts in the best interests of the corporation, without abusing their powers for personal gain or causing harm to the corporation.

The law specifically identifies three key areas where a breach may occur:

1.Good Faith:

Directors and officers must act in good faith and in the best interests of the corporation. If they are reckless or intentionally dishonest, and fail to uphold these duties, they commit an offence.

2. Use of Position:

Directors, officers, and employees commit an offence if they misuse their position dishonestly, either to gain an advantage for themselves or another person, or to cause detriment to the corporation.

3. Use of Information:

A director, officer, or employee who dishonestly uses information obtained through their role in the corporation to gain an advantage for themselves or others, or to cause detriment to the corporation, also commits an offence.

What Must the Prosecution Prove?

For a successful prosecution under Section 184, the prosecution must establish that:

1. You were reckless or acted with intentional dishonesty in their actions or decisions regarding the corporation.
2. You failed to exercise your powers in good faith and in the best interests of the corporation, or for a proper purpose.
3. You misused your position or information dishonestly, intending to gain an advantage for yourself or others, or to cause detriment to the corporation. Even if the misuse benefited the corporation, it is not a valid defence.

Penalty for good faith, use of position and use of information offences:

This is a serious offence which carries a level 6 imprisonment, with a maximum of 5 years.

Where will my case be heard?

Good faith, use of position and use of information – criminal offences cases can ONLY be heard in the Magistrates’ Court of Victoria.

Factors and defences to consider:

• Did you use your position of power or knowledge for an improper purpose?
• Did you act recklessly?
• Did you act dishonestly?
• Did you gain an advantage for yourself or someone else?
• Was this advantage gained accidentally or on purpose?
• Did you act alone or with others?
• What was your position at the time of the advantage?
• Did you have lawful reason to act in the manner you did?
• What were the surrounding circumstances?

What happens next?

If you’ve been charged with an offence under Section 184, it’s crucial to seek legal advice immediately. These charges are serious and can lead to substantial penalties, including imprisonment. The prosecution must prove intentional dishonesty or recklessness, and without proper legal representation, you may face the full severity of these penalties.

At MK Law, our experienced team of criminal defence lawyers can help you understand your rights, build a strong defence, and guide you through the complexities of your case. We will work tirelessly to protect your interests and seek the best possible outcome.

Contact MK Law today on 1800 130 120 for expert advice and assistance. Let us help you navigate this difficult time with confidence and skill.