(1) Subject to this section, a person must not, except with the leave of
the Court, seek or consent to be appointed as, or act as, administrator of a
company or of a deed of company arrangement if:
- (a)
- the person, or a
body corporate in which the person has a substantial holding, is indebted in
an amount exceeding $5,000 to the company or to a body corporate related to
the company; or
- (b)
- the person is, otherwise than in a capacity as administrator or liquidator
of, or as administrator of a deed of company arrangement executed by, the
company or a related body corporate, a creditor of the company or of a related
body corporate in an amount exceeding $5,000; or
- (c)
- the person is an officer of the company (otherwise than because of being
an administrator or liquidator of, or an administrator of a deed of company
arrangement executed by, a body corporate related to the company); or
- (d)
- the person is an officer of a body corporate that is a mortgagee of
property of the company; or
- (e)
- the person is an auditor of the company; or
- (f)
- the person is a partner or employee of an auditor of the company; or
- (g)
- the person is a partner, employer or employee of an officer of the
company; or
- (h)
- the person is a partner or employee of an employee of an officer of the
company.
(2) For the purposes of paragraph (1)(a), disregard a debt owed by a
natural person to a body corporate if:
- (a)
- the body corporate is:
- (i)
- an Australian ADI; or
- (ii)
- a body corporate registered under the Life Insurance Act 1995 ; and
- (b)
- the debt arose because of a loan that the body corporate or entity made to
the person in the ordinary course of its ordinary business; and
- (c)
- the person used the amount of the loan to pay the whole or part of the
purchase price of premises that the person uses as their principal place of
residence.
(3) For the purposes of subsection (1), a person is taken to be an
officer or auditor of a company if:
- (a)
- the person is an officer or auditor
of the company or of a related body corporate; or
- (b)
- except where ASIC, if it thinks fit in the circumstances of the case,
directs that this paragraph not apply in relation to the personthe
person has, within the last 2 years, been an officer, auditor or promoter of
the company or of a related body corporate.