Reference no: EM132604432

Question - ASIC was investigating the affairs of XYZ Limited (XYZ). In particular, it wished to ascertain whether XYZ owned an undisclosed substantial interest in another company, ABC Limited. To this end, ASIC commenced an investigation in relation to the affairs of XYZ. As part of this investigation, ASIC required the Managing Director, Sarah, to appear before a member of ASIC for an examination to answer questions under oath.

Sarah is concerned about her appearance at the examination. She is particularly concerned because, sometime after her appearance, one of her colleagues gave evidence in other related proceedings which established that Sarah's evidence was false. Also, under a notice issued pursuant to s.30 ASIC Act, ASIC is seeking disclosure of various documents, including letters written by Sarah to her overseas lawyers in relation to the matter which is the subject of the ASIC investigation.

(a) What powers does ASIC have to hold an investigation in relation to XYZ and an examination of Sarah?

(b) What action may ASIC take against Sarah or XYZ?

(c) What action may Sarah take (or what action could Sarah have taken) to protect her interests?