17Termination of appointment

#### 17 Termination of appointment Grounds for termination relating to financial circumstances etc. (1) The appointment of a director terminates if he or she becomes a disqualified person. (2) The Minister may terminate the appointment of a director if the director is not a disqualified person, but the director: (a) applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or (b) compounds with his or her creditors; or (c) makes an assignment of his or her remuneration for the benefit of his or her creditors. (3) The Minister may terminate the appointment of a director if the director’s continuation in office would contravene a SIS fitness and propriety standard. Other grounds for termination (4) Subject to subsections (7), (8) and (9), the Minister may terminate the appointment of a director: (a) for misbehaviour or physical or mental incapacity; or (b) if the director is absent, except on leave of absence, from 3 consecutive meetings of the Board; or (c) if the director fails, without reasonable excuse, to comply with section 22. > Note: The appointment of a director may also be terminated under section 30 of the Public Governance, Performance and Accountability Act 2013 (which deals with terminating the appointment of an accountable authority, or a member of an accountable authority, for contravening general duties of officials). (5) Subject to subsections (7), (8) and (9), if the Minister is of the opinion that the directors have failed to comply with paragraph 19(1)(a) or (b) of the Public Governance, Performance and Accountability Act 2013, the Minister may terminate the appointment of all directors or particular directors. Consultation with the Defence Minister (6) If the circumstances mentioned in subsection (2), (3), (4) or (5) exist in relation to a director (other than one covered by subsections (7) to (9)), the Minister must consult the Defence Minister before terminating the appointment of the director. Consent to termination (7) The Minister must not terminate the appointment of a director nominated by the President of the Australian Council of Trade Unions on a ground mentioned in subsection (4) or (5) unless the President consents to the termination. (8) The Minister must not terminate the appointment of a director nominated by the Chief of the Defence Force on a ground mentioned in subsection (4) or (5) unless the Chief consents to the termination. (9) However, if the President of the Australian Council of Trade Unions or the Chief of the Defence Force consents to the termination of a director, the Minister must terminate the director’s appointment. Consultation and consent requirements for termination under the Public Governance, Performance and Accountability Act 2013 (10) Subsections (6), (7), (8) and (9) apply (subject to subsection (11)) in relation to the termination of the appointment of a director under section 30 of the Public Governance, Performance and Accountability Act 2013 in the same way as they apply to the termination of the appointment of a director under this section. (11) However, subsections (7), (8) and (9) (as they apply because of subsection (10)) do not apply in relation to the termination of the appointment of a director under section 30 of that Act on the ground of a failure to comply with section 29 of that Act (which deals with the duty to disclose interests) or rules made for the purposes of that section.