Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 599

599. (1) This section applies to a company:

   (a)  that has been wound up, or is in the course of being wound up, because
        of inability to pay its debts as and when they became due;

   (b)  that has been in the course of being wound up because of inability to
        pay its debts as and when they became due, where the winding up has
        been stayed or terminated by an order under section 482;

   (c)  that has been or is under official management;

   (d)  that has ceased to carry on business because it was unable to pay its
        debts as and when they became due;

   (e)  in respect of which a levy of execution was not satisfied;

   (f)  in respect of property of which a receiver, or a receiver and manager,
        has been appointed, whether by a court or pursuant to the powers
        contained in an instrument, whether or not the appointment has been
        terminated; or

   (g)  that has entered into a compromise or arrangement with its creditors.

(2) Unless cause to the contrary is shown, the Court may, on an application by
the Commission and on being satisified as to the matters referred to in
subsection (3), make an order prohibiting a person specified in the order from
managing a corporation during such period not exceeding 5 years after the date
of the order as is specified in the order.

(3) The Court shall not make an order under subsection (2) unless it is
satisfied:

   (a)  that the person to whom the application for an order relates was given
        notice of the application;

   (b)  that, within the period of 7 years before notice of the application
        was given to the person referred to in paragraph (a), whether that
        period commenced before or after the commencement of this section,
        that person was a director of, or was concerned or took part in the
        management of, 2 or more companies to which this section applies; and

   (c)  that:

        (i)    in the case of each of those 2 companies; or

        (ii)   where the person was a director of, or was concerned or took
               part in the management of, more than 2 companies to which this
               section applies-in the case of each of 2 or more of those
               companies;
the manner in which affairs of the company had been managed was wholly or
partly responsible for the company being wound up, being under official
management, ceasing to carry on business, being unable to satisfy a levy of
execution, being subject to the appointment of a receiver, or a receiver and
manager, or entering into a compromise or arrangement with its creditors.

(4) A person who is subject to a section 599 order (whether made before or
after the commencement of this section) shall not be a director or promoter
of, or be in any way (whether directly or indirectly) concerned in or take
part in the management of, a corporation.
(5) In this section, "company" means:

   (a)  a corporation; or

   (b)  a Part 5.7 body.