sec.185Court’s power of disqualification—insolvency and non-payment of debts (cf Corporations Act s 206D )

sec.185 Court’s power of disqualification—insolvency and non-payment of debts (cf Corporations Act s 206D )

On application by the Registrar, the Supreme Court may disqualify a person from managing co-operatives for up to 20 years if— within the last 7 years, the person has been an officer of 2 or more entities (being co-operatives or other corporations) when they have failed; and the court is satisfied that— the manner in which the entity was managed was wholly or partly responsible for the entity failing; and the disqualification is justified. For the purposes of subsection (1) , an entity fails if— a court orders the entity to be wound up because the court is satisfied that it is insolvent; or the entity enters into voluntary liquidation and creditors are not fully paid or are unlikely to be fully paid; or the entity executes a deed of arrangement and creditors are not fully paid or are unlikely to be fully paid; or the entity ceases to carry on business and creditors are not fully paid or are unlikely to be fully paid; or a levy of execution against the entity is not satisfied; or a receiver, receiver and manager, or provisional liquidator is appointed in relation to the entity; or the entity enters into a compromise or arrangement with its creditors; or the entity is wound up and a liquidator lodges a report about the entity’s inability to pay its debts. In determining whether the disqualification is justified, the Supreme Court may have regard to— the person’s conduct in relation to the management, business or property of any entity; and any other matters that the court considers appropriate. Action may be able to be taken under section 206D of the Corporations Act in the circumstances to which this section applies, whether or not action is taken under this section. (sec.185-ssec.1) On application by the Registrar, the Supreme Court may disqualify a person from managing co-operatives for up to 20 years if— within the last 7 years, the person has been an officer of 2 or more entities (being co-operatives or other corporations) when they have failed; and the court is satisfied that— the manner in which the entity was managed was wholly or partly responsible for the entity failing; and the disqualification is justified. (sec.185-ssec.2) For the purposes of subsection (1) , an entity fails if— a court orders the entity to be wound up because the court is satisfied that it is insolvent; or the entity enters into voluntary liquidation and creditors are not fully paid or are unlikely to be fully paid; or the entity executes a deed of arrangement and creditors are not fully paid or are unlikely to be fully paid; or the entity ceases to carry on business and creditors are not fully paid or are unlikely to be fully paid; or a levy of execution against the entity is not satisfied; or a receiver, receiver and manager, or provisional liquidator is appointed in relation to the entity; or the entity enters into a compromise or arrangement with its creditors; or the entity is wound up and a liquidator lodges a report about the entity’s inability to pay its debts. (sec.185-ssec.3) In determining whether the disqualification is justified, the Supreme Court may have regard to— the person’s conduct in relation to the management, business or property of any entity; and any other matters that the court considers appropriate.