CORPORATIONS (ABORIGINAL AND TORRES STRAIT ISLANDER) ACT 2006 - SECT 279.30 Registrar's power of disqualification

CORPORATIONS (ABORIGINAL AND TORRES STRAIT ISLANDER) ACT 2006 - SECT 279.30

Power to disqualify

  (1)   The Registrar may disqualify a person from managing Aboriginal and Torres Strait Islander corporations for up to 5 years if:

  (a)   within 7 years immediately before the Registrar gives a notice under subparagraph   (b)(i):

  (i)   the person has been an officer of 2 corporations; and

  (ii)   each of those corporations was either an Aboriginal and Torres Strait Islander corporation or a Corporations Act corporation; and

  (iii)   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) of the Corporations Act (including that section as applied by section   526 - 35 of this Act) about the corporation's inability to pay its debts; and

  (b)   the Registrar has given the person:

  (i)   a written notice requiring them to demonstrate why the person should not be disqualified; and

  (ii)   an opportunity to be heard on the question; and

  (c)   the Registrar is satisfied that the disqualification is justified.

  (2)   A notice under subsection   (1) is not a legislative instrument.

  (3)   For the purposes of subsection   (1), a person is an officer of a Corporations Act corporation if the person is an officer of that corporation for the purposes of the Corporations Act.

Grounds for disqualification

  (4)   In determining whether disqualification is justified, the Registrar:

  (a)   must have regard to whether any of the Aboriginal and Torres Strait Islander corporations or Corporations Act 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 Aboriginal and Torres Strait Islander corporation or Corporations Act corporation; and

  (ii)   whether the disqualification would be in the public interest; and

  (iii)   any other matters that the Registrar considers appropriate.

Notice of disqualification

  (5)   If the Registrar disqualifies a person from managing Aboriginal and Torres Strait Islander corporations under this section, the Registrar must give a written notice to the person advising the person of the disqualification.

Start of disqualification

  (6)   The disqualification takes effect from the time when a notice referred to in subsection   (5) is served on the person.

Registrar power to grant leave

  (7)   The Registrar may give a person whom:

  (a)   the Registrar has disqualified from managing Aboriginal and Torres Strait Islander corporations under this Part; or

  (b)   ASIC has disqualified from managing corporations under Part   2D.6 of the Corporations Act;

written permission to manage a particular Aboriginal and Torres Strait Islander corporation or corporations. The permission may be expressed to be subject to conditions and exceptions determined by the Registrar.

  (8)   A permission under subsection   (7) is not a legislative instrument.