Corporations (Aboriginal and Torres Strait Islander) Act 2006

CHAPTER 6 - OFFICERS  

PART 6-5 - DISQUALIFICATION FROM MANAGING CORPORATIONS  

Division 279 - Disqualification from managing corporations  

SECTION 279-1   DISQUALIFIED PERSON NOT TO MANAGE CORPORATIONS  

279-1(1)    

A person who is disqualified from managing Aboriginal and Torres Strait Islander corporations under this Part commits an offence if:

(a)    the person makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of an Aboriginal and Torres Strait Islander corporation; or

(b)    the person exercises the capacity to affect significantly an Aboriginal and Torres Strait Islander corporation ' s financial standing; or

(c)    the person communicates instructions or wishes (other than advice given by the person in the proper performance of functions attaching to the person ' s professional capacity or their business relationship with the directors or the corporation) to the directors of an Aboriginal and Torres Strait Islander corporation:

(i) knowing that the directors are accustomed to act in accordance with the person ' s instructions or wishes; or

(ii) intending that the directors will act in accordance with those instructions or wishes.

Penalty: 50 penalty units or imprisonment for 12 months, or both.

279-1(2)    
For an offence against subsection (1) , strict liability applies to the circumstance that the person is disqualified from managing Aboriginal and Torres Strait Islander corporations under this Part.

Note:

For strict liability , see section 6.1 of the Criminal Code .

279-1(3)    
If the corporation is a registered native title body corporate, a person who is a common law holder of native title does not contravene subsection (1) merely because the directors of the corporation do (or refrain from doing) a particular act:

(a)    in good faith; and

(b)    with the belief that doing (or refraining from doing) the act is necessary to ensure that the corporation complies with a Native Title legislation obligation.

Note:

A defendant bears an evidential burden in relation to the matters in subsection (3) (see subsection 13.3(3) of the Criminal Code ).

279-1(4)    
It is a defence to a contravention of subsection (1) if the person had permission to manage the corporation under either section 279-30 or 279-35 and the person ' s conduct was within the terms of that permission.

Note:

A defendant bears an evidential burden in relation to the matters in subsection (4) (see subsection 13.3(3) of the Criminal Code ).

279-1(5)    
A person ceases to be a director, alternate director or a secretary of an Aboriginal and Torres Strait Islander corporation if:

(a)    the person becomes disqualified from managing Aboriginal and Torres Strait Islander corporations under this Part; and

(b)    the person is not given permission to manage the corporation under section 279-30 or 279-35 .

Note:

If a person ceases to be a director, alternate director or a secretary under subsection (5) , the corporation must notify the Registrar (see subsection 304-5(5) ).