206BAutomatic disqualification—convictions, bankruptcy and foreign court orders etc.

#### 206B Automatic disqualification—convictions, bankruptcy and foreign court orders etc. Convictions (1) A person becomes disqualified from managing corporations if the person: (a) is convicted on indictment of an offence that: (i) concerns the making, or participation in making, of decisions that affect the whole or a substantial part of the business of the corporation; or (ii) concerns an act that has the capacity to affect significantly the corporation’s financial standing; or (b) is convicted of an offence that: (i) is a contravention of this Act and is punishable by imprisonment for a period greater than 12 months; or (ii) involves dishonesty and is punishable by imprisonment for at least 3 months; or (c) is convicted of an offence against the law of a foreign country that is punishable by imprisonment for a period greater than 12 months. The offences covered by paragraph (a) and subparagraph (b)(ii) include offences against the law of a foreign country. (2) The period of disqualification under subsection (1) starts on the day the person is convicted and lasts for: (a) if the person does not serve a term of imprisonment—5 years after the day on which they are convicted; or (b) if the person serves a term of imprisonment—5 years after the day on which they are released from prison. Bankruptcy or personal insolvency agreement (3) A person is disqualified from managing corporations if the person is an undischarged bankrupt under the law of Australia, its external territories or another country. (4) A person is disqualified from managing corporations if: (a) the person has executed a personal insolvency agreement under: (i) Part X of the Bankruptcy Act 1966; or (ii) a similar law of an external Territory or a foreign country; and (b) the terms of the agreement have not been fully complied with. (5) A person is disqualified from managing corporations at a particular time if the person is, at that time, disqualified from managing Aboriginal and Torres Strait Islander corporations under Part 6‑5 of the Corporations (Aboriginal and Torres Strait Islander) Act 2006. Foreign court orders (6) A person is disqualified from managing corporations if the person is disqualified, under an order made by a court of a foreign jurisdiction that is in force, from: (a) being a director of a foreign company; or (b) being concerned in the management of a foreign company; or (c) being a director of a passport fund, or of an operator of a passport fund; or (d) being concerned in the management of a passport fund. Definitions (7) In this section: > foreign jurisdiction means a foreign country, or part of a foreign country, prescribed by the regulations as a foreign jurisdiction for the purposes of this section.