Commonwealth Numbered Acts

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ASIC's power of disqualification

Power to disqualify

(1) ASIC may disqualify a person from managing corporations for up to 5 years if:

within 7 years immediately before ASIC gives a notice under paragraph (b)(i):

the person has been an officer of 2 or more corporations; and
while the person was an officer, or within 12 months after the person ceased to be an officer of those corporations, each of the corporations was wound up and a liquidator lodged a report under subsection 533(1) about the corporation's inability to pay its debts; and
ASIC has given the person:

a notice in the prescribed form requiring them to demonstrate why they should not be disqualified; and
an opportunity to be heard on the question; and
ASIC is satisfied that the disqualification is justified.

Grounds for disqualification

(2) In determining whether disqualification is justified, ASIC:

must have regard to whether any of the corporations mentioned in subsection (1) were related to one another; and

may have regard to:

the person's conduct in relation to the management, business or property of any corporation; and
whether the disqualification would be in the public interest; and
any other matters that ASIC considers appropriate.

Notice of disqualification

(3) If ASIC disqualifies a person from managing corporations under this section, ASIC must serve a notice on the person advising them of the disqualification. The notice must be in the prescribed form.

Start of disqualification

(4) The disqualification takes effect from the time when a notice referred to in subsection (3) is served on the person.

ASIC power to grant leave

(5) ASIC may give a person who it has disqualified from managing corporations under this Part written permission to manage a particular corporation or corporations. The permission may be expressed to be subject to conditions and exceptions determined by ASIC.

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