Dishonest Use of Position

The maximum penalty for the offence of director dishonestly using their position is five years imprisonment and/or a $22,000 fine.

Which court will hear the matter?

This matter is indictable and will be dealt with in the District Court.

Common ways this offence occurs

Some common ways a person can find themselves facing this charge are as follows.

  • The person sold, gave away or used company property for the advantage of themself or others;
  • The person entered into a non-arms-length transaction with the company;
  • The person used the company to pay their personal bills.

What must be proven

The court must be satisfied of the following elements of the offence:

  • That the accused was a director, officer or employee of the company
  • That the accused used their position as a director, officer or employee
  • Their use of their position was dishonest according to the standards of ordinary people

Possible defence

This matter can sometimes be defended on the basis that the conduct is not dishonest according to the standards of ordinary persons.


The offence is governed by Section 184 the Corporations Act.

If you require legal advice or representation in any legal matter, please contact Armstrong Legal. 


If you suspect that you may be under investigation, or if you have been charged with an offence, it is vital to get competent legal advice as early as possible. Our lawyers are highly specialised in corporate crime and will be able to guide you through the process while dealing with the various authorities related to your matter.


Armstrong Legal
Social Rating
Based on 254 reviews
Legal Hotline.
Open 7am - Midnight, 7 Days
Call 1300 038 223