THE CORPORATIONS LAW

CHAPTER 2D - OFFICERS AND EMPLOYEES

View history reference
 View history note

PART 2D.6 - DISQUALIFICATION FROM MANAGING CORPORATIONS

 View history note

SECTION 206B   AUTOMATIC DISQUALIFICATION  

View history reference

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.

 View history note

 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.