Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) On application by the Registrar, the Court may disqualify a person from managing Aboriginal and Torres Strait Islander corporations for up to 20 years if:
(a) within the last 7 years, the person has been an officer of 2 or more corporations when they have failed in the circumstances referred to in subsection (2); and
(b) each of those corporations was either an Aboriginal and Torres Strait Islander corporation or Corporations Act corporation; and
(c) the Court is satisfied that:
(i) the manner in which each of the corporations was managed was wholly or partly responsible for the corporation failing; and
(ii) the disqualification is justified.
(2) For the purposes of subsection (1), the circumstances are:
(a) a Court orders the corporation to be wound up under:
(i) section 526 - 1 of this Act; or
(ii) section 459B of the Corporations Act;
because the Court is satisfied that the corporation is insolvent; or
(b) the corporation enters into voluntary liquidation and creditors are not fully paid or are unlikely to be fully paid; or
(c) the corporation executes:
(i) a deed of corporation arrangement; or
(ii) a deed of company arrangement (within the meaning of the Corporations Act);
and creditors are not fully paid or are unlikely to be fully paid; or
(d) the corporation ceases to carry on business and creditors are not fully paid or are unlikely to be fully paid; or
(e) a levy of execution against the corporation is not satisfied; or
(f) a receiver, receiver and manager, or provisional liquidator is appointed in relation to the corporation; or
(g) the corporation enters into a compromise or arrangement with its creditors under Part 5.1 of the Corporations Act (as applied by section 45 - 1 of this Act); or
(h) the corporation is wound up and a liquidator lodges a report under subsection 533(1) of the Corporations Act (including that section as applied by section 526 - 35 of this Act) about the corporation's inability to pay its debts.
Note: To satisfy paragraph (h), the corporation must begin to be wound up while the person is an officer or within 12 months after the person ceases to be an officer. However, the report under subsection 533(1) of the Corporations Act may be lodged by the liquidator at a time that is more than 12 months after the person ceases to be an officer. Sections 513A to 513D of the Corporations Act contain rules about when a winding up begins.
(3) For the purposes of subsection (1), a person is an officer of a Corporations Act corporation if the person is an officer of that corporation for the purposes of the Corporations Act.
(4) In determining whether the disqualification is justified, the Court may have regard to:
(a) the person's conduct in relation to the management, business or property of any Aboriginal and Torres Strait Islander corporation or Corporations Act corporation; and
(b) any other matters that the Court considers appropriate.