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CORPORATIONS (ABORIGINAL AND TORRES STRAIT ISLANDER) ACT 2006 - SECT 279.1

Disqualified person not to manage corporations

  (1)   A person who is disqualified from managing Aboriginal and Torres Strait Islander corporations under this Part   commits an offence if:

  (a)   the person makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of an Aboriginal and Torres Strait Islander corporation; or

  (b)   the person exercises the capacity to affect significantly an Aboriginal and Torres Strait Islander corporation's financial standing; or

  (c)   the person communicates instructions or wishes (other than advice given by the person in the proper performance of functions attaching to the person's professional capacity or their business relationship with the directors or the corporation) to the directors of an Aboriginal and Torres Strait Islander corporation:

  (i)   knowing that the directors are accustomed to act in accordance with the person's instructions or wishes; or

  (ii)   intending that the directors will act in accordance with those instructions or wishes.

Penalty:   50 penalty units or imprisonment for 12 months, or both.

  (2)   For an offence against subsection   (1), strict liability applies to the circumstance that the person is disqualified from managing Aboriginal and Torres Strait Islander corporations under this Part.

Note:   For strict liability , see section   6.1 of the Criminal Code .

  (3)   If the corporation is a registered native title body corporate, a person who is a common law holder of native title does not contravene subsection   (1) merely because the directors of the corporation do (or refrain from doing) a particular act:

  (a)   in good faith; and

  (b)   with the belief that doing (or refraining from doing) the act is necessary to ensure that the corporation complies with a Native Title legislation obligation.

Note:   A defendant bears an evidential burden in relation to the matters in subsection   (3) (see subsection   13.3(3) of the Criminal Code ).

  (4)   It is a defence to a contravention of subsection   (1) if the person had permission to manage the corporation under either section   279 - 30 or 279 - 35 and the person's conduct was within the terms of that permission.

Note:   A defendant bears an evidential burden in relation to the matters in subsection   (4) (see subsection   13.3(3) of the Criminal Code ).

  (5)   A person ceases to be a director, alternate director or a secretary of an Aboriginal and Torres Strait Islander corporation if:

  (a)   the person becomes disqualified from managing Aboriginal and Torres Strait Islander corporations under this Part; and

  (b)   the person is not given permission to manage the corporation under section   279 - 30 or 279 - 35.

Note:   If a person ceases to be a director, alternate director or a secretary under subsection   (5), the corporation must notify the Registrar (see subsection   304 - 5(5)).



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