THE CORPORATIONS LAW

CHAPTER 2D - OFFICERS AND EMPLOYEES

PART 2D.6 - DISQUALIFICATION FROM MANAGING CORPORATIONS

SECTION 206B   AUTOMATIC DISQUALIFICATION  

206B(1)  Convictions.  

A person becomes disqualified from managing corporations if the person:

(a)  is convicted on indictment of an offence that:

(i) concerns the making, or participation in making, of decisions that affect the whole or a substantial part of the business of the corporation; or

(ii) concerns an act that has the capacity to affect significantly the corporation's financial standing; or

(b)  is convicted of an offence that:

(i) is a contravention of the Corporations Law and is punishable by imprisonment for a period greater than 12 months; or

(ii) involves dishonesty and is punishable by imprisonment for at least 3 months; or

(c)  is convicted of an offence against the law of a foreign country that is punishable by imprisonment for a period greater than 12 months.

The offences covered by paragraph (a) and subparagraph (b)(ii) include offences against the law of a foreign country.

206B(2)  [Period of disqualification]  

The period of disqualification under subsection (1) starts on the day the person is convicted and lasts for:

(a)  if the person does not serve a term of imprisonment - 5 years after the day on which they are convicted; or

(b)  if the person serves a term of imprisonment - 5 years after the day on which they are released from prison.

206B(3)  Bankruptcy, deed of arrangement or composition with creditors.  

A person is disqualified from managing corporations if the person is an undischarged bankrupt under the law of Australia, its external territories or another country.

206B(4)  [Effect of deed of arrangement or composition]  

A person is disqualified from managing corporations if:

(a)  the person has executed a deed of arrangement under Part X of the Bankruptcy Act 1966 (or a similar law of an external territory or another country) and the terms of the deed have not been fully complied with; or

(b)  the person's creditors have accepted a composition under Part X of the Bankruptcy Act 1966 (or a similar law of an external territory or another country) and final payment has not been made under the composition.