CORPORATIONS ACT 2001

CHAPTER 2D - OFFICERS AND EMPLOYEES  

PART 2D.6 - DISQUALIFICATION FROM MANAGING CORPORATIONS  

SECTION 206B   AUTOMATIC DISQUALIFICATION - CONVICTIONS, BANKRUPTCY AND FOREIGN COURT ORDERS ETC.  

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 this Act 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)  
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 or personal insolvency agreement.  

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)  


A person is disqualified from managing corporations if:


(a) the person has executed a personal insolvency agreement under:


(i) Part X of the Bankruptcy Act 1966 ; or

(ii) a similar law of an external Territory or a foreign country; and


(b) the terms of the agreement have not been fully complied with.

206B(5)  


A person is disqualified from managing corporations at a particular time if the person is, at that time, disqualified from managing Aboriginal and Torres Strait Islander corporations under Part 6-5 of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 .

206B(6)   Foreign court orders.  

A person is disqualified from managing corporations if the person is disqualified, under an order made by a court of a foreign jurisdiction that is in force, from:


(a) being a director of a foreign company; or


(b) being concerned in the management of a foreign company; or


(c) being a director of a passport fund, or of an operator of a passport fund; or


(d) being concerned in the management of a passport fund.

206B(7)   Definitions.  

In this section:

foreign jurisdiction
means a foreign country, or part of a foreign country, prescribed by the regulations as a foreign jurisdiction for the purposes of this section.


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