Companies Act 2014 section 944AD

Resolution of suspected certain conduct by agreement — relevant director

Section 944AD allows the Corporate Enforcement Authority and a relevant director of a public interest entity to resolve suspected misconduct by entering into a voluntary agreement, without necessarily completing a formal investigation.

• The Authority and a relevant director may, at their absolute discretion, enter into a binding agreement to resolve matters relating to conduct that gives rise to a relevant contravention, and this agreement can be reached before any investigation starts or while one is in progress
• The agreement cannot be entered into after an investigation has been completed, unless the investigation was conducted solely to determine which sanctions should be imposed on the director
• The terms of the agreement may include the director's acceptance of one or more sanctions, and once agreed, the terms are binding on both the Authority and the director
• If the director fails to comply with the agreement, the Authority can apply to court for a compliance order, and any unpaid monetary amount can be recovered as a simple contract debt

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