Civil Penalties and Director Misconduct

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Civil Penalties and Director Misconduct

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A civil penalty refers to a penalty that is imposed by courts in the instance, where such courts apply civil procedures, as opposed to criminal when it comes to determining liability, as well as evaluating the penalty for an illegal act.  However, civil penalty does not rely on the character of the unlawful demeanor itself.  In the instance, where a director has acted in an unlawful manner, the ASIC has the mandate to either prosecute an individual by pursing either criminal or civil proceedings or even both (Goode, 2011).  Section 1317 E of the Corporation provides for civil penalty provisions in the Act.

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