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CORPORATIONS ACT 2001 - SECT 206B Automatic disqualification--convictions, bankruptcy and foreign court orders etc.

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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