Power to disqualify
(1) ASIC may disqualify a person from managing
corporations for up to 5 years if:
- (a)
- within 7 years immediately before
ASIC gives a notice under paragraph (b)(i):
- (i)
- the person has been an officer of 2 or more corporations; and
- (ii)
- 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
- (b)
- ASIC has given the person:
- (i)
- a notice in the prescribed form requiring them to demonstrate why they
should not be disqualified; and
- (ii)
- an opportunity to be heard on the question; and
- (c)
- ASIC is satisfied that the disqualification is justified.
Grounds for disqualification
(2) In determining whether disqualification is
justified, ASIC:
- (a)
- must have regard to whether any of the corporations
mentioned in subsection (1) were related to one another; and
- (b)
- may have regard to:
- (i)
- the person's conduct in relation to the management, business or property
of any corporation; and
- (ii)
- whether the disqualification would be in the public interest; and
- (iii)
- 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.