(1) A person who is disqualified from managing corporations under this Part
commits an offence if:
- (a)
- they make, or participate in making, decisions
that affect the whole, or a substantial part, of the business of the
corporation; or
- (b)
- they exercise the capacity to affect significantly the corporation's
financial standing; or
- (c)
- they communicate 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 the 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.
It is a defence to the contravention if the person had permission to manage
the corporation under either section 206F or 206G and their conduct was
within the terms of that permission.
- Note: Under section 1274AA, ASIC is required to keep a record of persons
disqualified from managing corporations.
(2) A person ceases to be a director, alternate director or a secretary of a
company if:
- (a)
- the person becomes disqualified from managing corporations
under this Part; and
- (b)
- they are not given permission to manage the corporation under
section 206F or 206G.
- Note: If a person ceases to be a director, alternate director or a secretary
under subsection (2) the company must notify ASIC (see subsection
205B(5)).
Commonwealth Numbered Acts