Document ID: chunk:federal_register_of_legislation:C2004C01070:clause:1_206b
Version: federal_register_of_legislation:C2004C01070
Segment Type: clause
Provision Reference: sch 1 cl 206B
Character Range: 80275–82290

206B  Automatic disqualification

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 the Corporations Law 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, deed of arrangement or composition with creditors

 (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 deed of arrangement under Part X of the Bankruptcy Act 1966 (or a similar law of an external territory or another country) and the terms of the deed have not been fully complied with; or
 (b) the person's creditors have accepted a composition under Part X of the Bankruptcy Act 1966 (or a similar law of an external territory or another country) and final payment has not been made under the composition.