Commonwealth Consolidated Acts

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CORPORATIONS ACT 2001 - SECT 206B

Automatic disqualification--convictions, bankruptcy and foreign court orders etc.

Convictions

             (1)  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.

             (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.

Bankruptcy or personal insolvency agreement

             (3)  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.

             (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.

             (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 .

Foreign court orders

             (6)  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.

Definitions

             (7)  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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