57Disqualification for fraud, dishonesty etc.

#### 57 Disqualification for fraud, dishonesty etc. Disqualified individuals or bodies corporate not to be accredited (1) ESRA must not accredit an individual or a body corporate under the accreditation scheme at a particular time if the individual or body corporate is a disqualified person at that time. > Note: Disqualified person is defined by subsection (6). Disqualified company directors etc. (2) ESRA must not accredit a body corporate under the accreditation scheme at a particular time if any of the following individuals is a disqualified person at that time: (a) a director of the body corporate; (b) the secretary of the body corporate; (c) a person (by whatever name called and whether or not a director of the body corporate) who is concerned in, or takes part in, the management of the body corporate. > Note: Disqualified person is defined by subsection (6). Disqualified partners (3) ESRA must not accredit a partnership under the accreditation scheme at a particular time if: (a) in a case where a partner is an individual—the partner is a disqualified person at that time; or (b) in a case where a partner is a body corporate—any of the following individuals is a disqualified person at that time: (i) a director of the body corporate; (ii) the secretary of the body corporate; (iii) a person (by whatever name called and whether or not a director of the body corporate) who is concerned in, or takes part in, the management of the body corporate. > Note: Disqualified person is defined by subsection (6). Disqualified members of the executive committees of unincorporated associations etc. (4) ESRA must not accredit an unincorporated association under the accreditation scheme at a particular time if any of the following individuals is a disqualified person at that time: (a) a member of the executive committee of the unincorporated association; (b) a person (by whatever name called and whether or not a member of the executive committee of the unincorporated association) who is concerned in, or takes part in, the management of the unincorporated association. > Note: Disqualified person is defined by subsection (6). Cancellation of accreditation (5) ESRA must cancel the accreditation of an entity under the accreditation scheme at a particular time if, assuming that the entity had not been accredited at that time, ESRA would have been prevented by this section from accrediting the entity at that time. Disqualified person (6) For the purposes of this section, a person is a disqualified person at a particular time if: (a) the person has been convicted (whether before or after the commencement of this section): (i) of an offence against section 60 (which deals with false or misleading statements in connection with claims for payments); or (ii) of an offence that: (A) is an offence against a law of the Commonwealth, a State, a Territory or a foreign country; and (B) involves fraud or dishonesty; and (C) is punishable by imprisonment for life or for a period, or maximum period, of at least 2 years; or (iii) on indictment of an offence that: (A) is an offence against a law of the Commonwealth, a State, a Territory or a foreign country; and (B) is in connection with the promotion, formation or management of a body corporate; or (iv) of an offence for a contravention of any of the following provisions of the Corporations Law of a State or an internal Territory: (A) section 232; (B) section 590; (C) section 591; (D) section 592; (E) section 595; (F) section 996; (G) section 1307; (H) Part 6.6; (I) Division 2 of Part 7.11; or (v) of an offence of which the person is guilty because of subsection 1317FA(1) of the Corporations Law of a State or an internal Territory; and (b) the time occurs during whichever of the following periods is applicable: (i) if the person was sentenced to imprisonment—the period: (A) beginning when the person was convicted; and (B) ending 5 years after the person’s release from prison; (ii) in any other case—the period: (A) beginning when the person was convicted; and (B) ending 5 years after the conviction. > Note 1: Section 232 of the Corporations Law deals with duties of directors and other company officers. > Note 2: Sections 590, 591, 592 and 595 of the Corporations Law deal with fraud etc. in relation to the winding‑up of a company etc. > Note 3: Section 996 of the Corporations Law deals with false or misleading prospectuses. > Note 4: Section 1307 of the Corporations Law deals with falsification of the books of a company. > Note 5: Part 6.6 of the Corporations Law deals with misleading statements relating to company takeovers etc. > Note 6: Division 2 of Part 7.11 of the Corporations Law deals with fraud etc. in relation to dealing in securities. > Note 7: Section 1317FA of the Corporations Law deals with criminal contraventions of civil penalty provisions. Civil penalty provisions include provisions relating to the following: (a) the duties of directors and other company officers; (b) financial benefits to directors etc.; (c) financial statements and directors’ reports; (d) trading while insolvent. Extended meaning of conviction—orders under section 19B of the Crimes Act 1914 etc. (7) A reference in this section to a conviction of a person of an offence includes a reference to the making of an order under section 19B of the Crimes Act 1914, or under a corresponding provision of a law of a State, a Territory or a foreign country, in relation to a person in respect of an offence. > Note: Section 19B of the Crimes Act 1914 empowers a court that has found a person to have committed an offence to take action without proceeding to record a conviction. This section does not limit accreditation scheme (8) This section does not, by implication, limit the generality of sections 49 and 50 (which deal with the accreditation scheme). Spent convictions scheme not affected by this section (9) This section does not affect the operation of Part VIIC of the Crimes Act 1914 (which includes provisions relieving persons from requirements to disclose spent convictions). Transitional—previous company law (10) A reference in this section to a section, Division or Part of the Corporations Law of a State or an internal Territory includes a reference to a corresponding previous law, within the meaning of that Corporations Law, in relation to that section, Division or Part.