17Minister may order directors of relevant companies to vacate office

17 Minister may order directors of relevant companies to vacate office

17 Minister may order directors of relevant companies to vacate office

(1) The Minister may, by order served on a relevant company, direct that—

(a) a specified director of the company ceases to hold office as a director on the day specified in the order, and

(b) a specified person is appointed instead of the specified director on that day or a subsequent day specified in the order.

(2) The Minister may not make an order under subsection (1) in respect of a liable entity if the SPF trustee holds all of the shares in the liable entity for the purposes of the SPF.

(3) A director of a relevant company in respect of whom an order is made under subsection (1) must not continue to act as a director of the company during or after the day specified in the order for the director to cease to hold office.

Maximum penalty—1,000 penalty units.

(4) It is taken to be a provision of the constitution of each relevant company that—

(a) a director in respect of whom an order is made under subsection (1) ceases to hold office as a director on the day specified in the order, and

(b) the vacancy in the office may only be filled by a person appointed by the Minister in an order made under subsection (1), and

(c) this power of appointment has effect despite any other provision of the constitution of the relevant company.

(5) A person who, by operation of this section, ceases to hold office as a director of a relevant company is not entitled to any remuneration or compensation because of the loss of that office.