Commonwealth Consolidated Acts

BANKING ACT 1959 - SECT 21

  (1)   On application by APRA, the Federal Court of Australia may, by order, disqualify a person from being or acting as a person referred to in subsection   (2), for a period that the Court considers appropriate, if the Court is satisfied that:

  (a)   the person is not a fit and proper person to be or act as such a person; and

  (b)   the disqualification is justified.

  (2)   For the purposes of subsection   (1), the Court may disqualify a person from being or acting as one or more of the following:

  (a)   a director or senior manager of:

  (i)   a particular ADI; or

  (ii)   a class of ADIs; or

  (iii)   any ADI;

    (other than a particular foreign ADI, a class of foreign ADIs or any foreign ADI);

  (b)   a senior manager of the Australian operations of:

  (i)   a particular foreign ADI; or

  (ii)   a class of foreign ADIs; or

  (iii)   any foreign ADI;

  (c)   a director or senior manager of:

  (i)   a particular authorised NOHC; or

  (ii)   a class of authorised NOHCs; or

  (iii)   any authorised NOHC;

  (d)   an auditor of:

  (i)   a particular ADI or a particular authorised NOHC; or

  (ii)   a class of ADIs or a class of authorised NOHCs; or

  (iii)   any ADI or any authorised NOHC.

  (3)   In deciding whether it is satisfied as mentioned in paragraph   (1)(a), the Court may take into account:

  (a)   any matters specified in the regulations for the purposes of this paragraph; and

  (b)   any criteria for fitness and propriety set out in the prudential standards; and

  (c)   any other matters the Court considers relevant.

  (4)   In deciding whether the disqualification is justified as mentioned in paragraph   (1)(b), the Court may have regard to:

  (a)   if the application is for the person to be disqualified from being or acting as a director or senior manager--the person's conduct in relation to the management, business or property of any corporation; and

  (b)   if the application is for the person to be disqualified from being or acting as an auditor--the person's conduct in relation to the functions or duties of the person as required under this Act and the prudential standards; and

  (c)   in any case--any other matters the Court considers relevant.

  (5)   As soon as practicable after the Court disqualifies a person under this section, APRA must cause particulars of the disqualification:

  (a)   to be given:

  (i)   if the person is, or is acting as, a person referred to in subparagraph   (2)(a)(i)--to the ADI concerned; or

  (ii)   if the person is, or is acting as, a person referred to in subparagraph   (2)(b)(i)--to the foreign ADI concerned; or

  (iii)   if the person is, or is acting as, a person referred to in subparagraph   (2)(c)(i)--to the authorised NOHC concerned; or

  (iv)   if the person is, or is acting as, a person referred to in subparagraph   (2)(d)(i)--to the ADI or authorised NOHC concerned; and

  (b)   to be published in the Gazette .