THE CORPORATIONS LAW

CHAPTER 2D - OFFICERS AND EMPLOYEES

PART 2D.6 - DISQUALIFICATION FROM MANAGING CORPORATIONS

SECTION 206E   COURT POWER OF DISQUALIFICATION - REPEATED CONTRAVENTIONS OF LAW  

206E(1)  [Power of Court]  

On application by ASIC, the Court may disqualify a person from managing corporations for the period that the Court considers appropriate if:

(a)  the person:

(i) has at least twice been an officer of a body corporate that has contravened this Law while they were an officer of the body corporate and each time the person has failed to take reasonable steps to prevent the contravention; or

(ii) has at least twice contravened this Law while they were an officer of a body corporate; or

(iii) has been an officer of a body corporate and has done something that would have contravened subsection 180(1) or section 181 if the body corporate had been a corporation; and

(b)  the Court is satisfied that the disqualification is justified.

206E(2)  [Relevant circumstances]  

In determining whether the disqualification is justified, the Court may have regard to:

(a)  the person's conduct in relation to the management, business or property of any corporation; and

(b)  any other matters that the Court considers appropriate.