THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.3A - ADMINISTRATION OF A COMPANY'S AFFAIRS WITH A VIEW TO EXECUTING A DEED OF COMPANY ARRANGEMENT

Division 14 - Qualifications of administrators

SECTION 448C   DISQUALIFICATION OF PERSON CONNECTED WITH COMPANY  

448C(1)  [Who is disqualified]  

Subject to this section, a person must not, except with the leave of the Court, seek or consent to be appointed as, or act as, administrator of a company or of a deed of company arrangement if:

(a)  the person, or a body corporate in which the person has a substantial holding, is indebted in an amount exceeding $5,000 to the company or to a body corporate related to the company; or

(b)  the person is, otherwise than in a capacity as administrator or liquidator of, or as administrator of a deed of company arrangement executed by, the company or a related body corporate, a creditor of the company or of a related body corporate in an amount exceeding $5,000; or

(c)  the person is an officer of the company (otherwise than because of being an administrator or liquidator of, or an administrator of a deed of company arrangement executed by, a body corporate related to the company); or

(d)  the person is an officer of a body corporate that is a mortgagee of property of the company; or

(e)  the person is an auditor of the company; or

(f)  the person is a partner or employee of an auditor of the company; or

(g)  the person is a partner, employer or employee of an officer of the company; or

(h)  the person is a partner or employee of an employee of an officer of the company.

448C(2)  [Indebtedness to a body corporate]  

For the purposes of paragraph (1)(a), disregard a debt owed by a natural person to a body corporate if:

(a)  the body corporate is:

(i) an Australian ADI; or

(ii) a body corporate registered under the Life Insurance Act 1995; and

(b)  the debt arose because of a loan that the body corporate or entity made to the person in the ordinary course of its ordinary business; and

(c)  the person used the amount of the loan to pay the whole or part of the purchase price of premises that the person uses as their principal place of residence.

448C(3)  [Officer or auditor of a company]  

For the purposes of subsection (1), a person is taken to be an officer or auditor of a company if:

(a)  the person is an officer or auditor of the company or of a related body corporate; or

(b)  except where the Commission, if it thinks fit in the circumstances of the case, directs that this paragraph not apply in relation to the person - the person has, within the last 2 years, been an officer, auditor or promoter of the company or of a related body corporate.