S206B Automatically disqualifies a person from managing corporations if the – person is convicted of serious criminal offences or becomes bankrupt. Power to disqualify a person from managing corporations if the person was S206F – an officer of two or more companies that became insolvent. Purpose To deter for would-be offenders that seek to offend Protects the public from exposed to who have offended and will “persons if not restrained” Chew v NCSC – Managing a corporation S206A A person is if they make decision which: – PAGE 267 IMPORTANT! – Automatic Disqualification A person is automatically disqualified from managing corporations if they are convicted of an offence that: Disqualification by court order S206C(1) Gives the court the power to disqualify a person from managing – corporations where a court has declared under s1317E that the person contravened a civil penalty provision. Failed Companies S206D(1) Gives the court the power to disqualify a person from managing – corporations for up to 20 years if within the last seven years the person has been an officer of two or more failed companies. S206E(1) Gives the court the power to disqualify a person from managing – corporations if the person: ASIC Powers ASIC power to disqualify a person from managing corporations for up to five – years. Cullen v Corporate Affairs Commission – Appropriate to disqualify a person under the predecessor of s206F. Evidence indicated that a director of four failed companies had not met the standards that the community expected a director to reach. Did not attempt to mitigate loss or remit group tax. Removal of Directors – S203D Provides that members may by resolution remove a director before the – expiration of their period in office. Removal in this manner is permitted despite anything to the contrary contained in the constitution or in a separate agreement between the director and the company. S230D(1) The effect of the removal does not take effect until a successor has been – appointed. This section attempts to give members of public companies some control over the positions of the board of directors.
S206B – Automatically disqualifies a person from managing corporations if the person is convicted of serious criminal offences or becomes bankrupt. S206F – Power to disqualify a person from managing corporations if the person was an officer of two or more companies that became insolvent. Purpose To deter for would-be offenders that seek to offend Protects the public from exposed to “persons who have offended and will if not restrained” – Chew v NCSC Managing a corporation S206A – A person is if they make decision which: PAGE 267 – IMPORTANT! Automatic Disqualification A person is automatically disqualified from managing corporations if they are convicted of an offence that: Disqualification by court order S206C(1) – Gives the court the power to disqualify a person from managing corporations where a court has declared under s1317E that the person contravened a civil penalty provision. Failed Companies S206D(1) – Gives the court the power to disqualify a person from managing corporations for up to 20 years if within the last seven years the person has been an officer of two or more failed companies. S206E(1) – Gives the court the power to disqualify a person from managing corporations if the person: ASIC Powers – ASIC power to disqualify a person from managing corporations for up to five years. Cullen v Corporate Affairs Commission – Appropriate to disqualify a person under the predecessor of s206F. Evidence indicated that a director of four failed companies had not met the standards that the community expected a director to reach. Did not attempt to mitigate loss or remit group tax. Removal of Directors – S203D – Provides that members may by resolution remove a director before the expiration of their period in office. Removal in this manner is permitted despite anything to the contrary contained in the constitution or in a separate agreement between the director and the company. S230D(1) – The effect of the removal does not take effect until a successor has been appointed. This section attempts to give members of public companies some control over the positions of the board of directors.
Company_Law_Summary.docx