Sch 2 s 248Order disqualifying a person from managing corporations

248 Order disqualifying a person from managing corporations

(1) A court may, on application of the regulator, make an order disqualifying a person from managing corporations for a period that the court considers appropriate if:

(a) the court is satisfied that the person has contravened, has attempted to contravene or has been involved in a contravention of any of the following provisions:

(i) a provision of Part 2‑2 (which is about unconscionable conduct);

(ia) a provision of Part 2‑3 (which is about unfair contract terms);

(ii) a provision of Part 3‑1 (which is about unfair practices);

(iii) a provision (other than section 85) of Division 2 of Part 3‑2 (which is about unsolicited consumer agreements);

(iv) section 106(1), (2), (3) or (5), 107(1) or (2), 118(1), (2), (3) or (5), 119(1) or (2), 125(4), 127(1) or (2), 128(2) or (6), 131(1) or 132(1) (which are about safety of consumer goods and product related services);

(v) section 136(1), (2) or (3) or 137(1) or (2) (which are about information standards);

(vi) a provision of Chapter 4 (which is about offences); and

(b) the court is satisfied that the disqualification is justified.

Note: Section 206EA of the Corporations Act 2001 provides that a person is disqualified from managing corporations if a court order is in force under this section. That Act contains various consequences for persons so disqualified.

(2) In determining under subsection (1) 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 corporation; and

(b) any other matters that the court considers appropriate.

(3) If the court makes an order under subsection (1), the regulator must:

(a) notify ASIC; and

(b) give ASIC a copy of any such order.

Note: ASIC must keep a register of persons who have been disqualified from managing corporations: see section 1274AA of the Corporations Act 2001.

(4) For the purposes of this Schedule (other than this section or section 249), an order under this section is not a penalty.