New South Wales Consolidated Acts

CO-OPERATIVES ACT 1992 - SECT 208

208 Disqualified persons

(cf Vic Act s 214)

(1) A person must not act as a director or directly or indirectly take part in or be concerned with the management of a co-operative if the person:

(a) is the auditor of the co-operative or a partner, employee or employer of the auditor, or

(b) has been convicted, whether before or after the commencement of this section, within or outside New South Wales:

(i) on indictment of an offence in connection with the promotion, formation or management of a body corporate, or

(ii) of an offence involving fraud or dishonesty punishable on conviction by imprisonment for a period of not less than 3 months, or

(iii) of any offence under section 184, 344, 590, 592, 670A or 728 of the Corporations Act, or

(iv) of any offence under any provision of a previous law of New South Wales or of another State or Territory, with which any of the provisions referred to in subparagraph (iii) corresponds,

within a period of 5 years after the conviction or, if sentenced to imprisonment, after his or her release from prison, except with the leave of the Court.

Maximum penalty: 240 penalty units or imprisonment for 2 years, or both.

(2) A person must not act as a director or directly or indirectly take part in or be concerned with the management of a co-operative if the person:

(a) has been convicted of any offence under this Act, within a period of 5 years after the conviction, except with the leave of the Court, or

(b) is prohibited from being a director of a company under Part 2D.6 (Disqualification from managing corporations) of the Corporations Act, or

(c) is an insolvent under administration (as defined in the Corporations Act), or

(d) has been convicted of a contravention of section 181, 182 or 183 of the Corporations Act (as applied under this Act).

Maximum penalty: 240 penalty units or imprisonment for 2 years, or both.

(3) In any proceeding for an offence against subsection (1), a certificate by an authority prescribed by the regulations stating that a person was released from prison on a specified date, is in the absence of evidence to the contrary, proof that that person was released from prison on that date.

(4) A person who intends to apply for leave of the Court must give the Registrar at least 21 days notice of his or her intention.

(5) The Court may grant leave subject to any condition or limitation it considers appropriate.

(6) A person must comply with any condition or limitation subject to which leave is granted.

Maximum penalty: 240 penalty units or imprisonment for 2 years, or both.

(7) On the application of the Registrar, the Court may revoke its leave.

(8) Subject to this section, a co-operative is declared to be an applied Corporations legislation matter for the purposes of Part 3 of the Corporations (Ancillary Provisions) Act 2001 in relation to the provisions of Part 2D.6 of the Corporations Act, subject to the following modifications:

(a) a reference in those provisions to corporations is to be read as a reference to co-operatives,

(b) such other modifications (within the meaning of Part 3 of the Corporations (Ancillary Provisions) Act 2001 ) as may be prescribed by the regulations.

Note: See the note to section 10 (1).