245Disqualified persons not to be directors, principal executive officers etc. of life companies

#### 245 Disqualified persons not to be directors, principal executive officers etc. of life companies (1) For the purposes of this Act, a person is a disqualified person if, at any time: (a) the person has been convicted of an offence against this Act, the repealed Life Insurance Act 1945 or the Financial Accountability Regime Act 2023; or (b) the person has been convicted of an offence against any other law of the Commonwealth or a law of a State, a Territory or a foreign country, being an offence in respect of: (i) conduct relating to insurance; or (ii) dishonest conduct; or (c) the person has: (i) become bankrupt; or (ii) applied to take the benefit of a law for the relief of bankrupt or insolvent debtors; or (iii) compounded with his or her creditors; or (d) the Federal Court of Australia has disqualified the person under section 245A. (2) A person commits an offence if: (a) the person is a disqualified person; and (b) the person is or acts as: (i) a director of a company, or body corporate, registered under this Act; or (ii) a principal executive officer of a company, or body corporate, registered under this Act; or (iii) an appointed actuary of a company registered under section 21; or (iv) an auditor of a company, or body corporate, registered under this Act; and (c) for a person who is a disqualified person only because he or she was disqualified under section 245A—the person is disqualified from being or acting as that director, principal executive officer, actuary or auditor (as the case requires). Penalty: Imprisonment for 2 years. (3) A person commits an offence if: (a) the person is a disqualified person; and (b) the person is or acts as: (i) a director of a company, or body corporate, registered under this Act; or (ii) a principal executive officer of a company, or body corporate, registered under this Act; or (iii) an appointed actuary of a company registered under section 21; or (iv) an auditor of a company, or body corporate, registered under this Act; and (c) for a person who is a disqualified person only because he or she was disqualified under section 245A—the person is disqualified from being or acting as that director, principal executive officer, actuary or auditor (as the case requires). Penalty: 60 penalty units. (4) Subsection (3) is an offence of strict liability. > Note: For strict liability, see section 6.1 of the Criminal Code. (5) A company or body corporate commits an offence if: (a) the company or body corporate is registered under this Act; and (b) a person is a disqualified person; and (c) the person is or acts as: (i) a director of the company or body corporate; or (ii) a principal executive officer of the company or body corporate; or (iii) an appointed actuary of the company; or (iv) an auditor of the company or body corporate; and (d) for a person who is a disqualified person only because he or she was disqualified under section 245A—the person is disqualified from being or acting as that director, principal executive officer, actuary or auditor (as the case requires); and (e) in any case—the company or body corporate allows the person to be or act as a director, principal executive officer, actuary or auditor (as the case requires). Penalty: 250 penalty units. (5A) A company or body corporate commits an offence if: (a) the company or body corporate is registered under this Act; and (b) a person is a disqualified person; and (c) the person is or acts as: (i) a director of the company or body corporate; or (ii) a principal executive officer of the company or body corporate; or (iii) an appointed actuary of the company; or (iv) an auditor of the company or body corporate; and (d) for a person who is a disqualified person only because he or she was disqualified under section 245A—the person is disqualified from being or acting as that director, principal executive officer, actuary or auditor (as the case requires); and (e) in any case—the company or body corporate allows the person to be or act as a director, principal executive officer, actuary or auditor (as the case requires). Penalty: 60 penalty units. (5B) Subsection (5A) is an offence of strict liability. > Note: For strict liability, see section 6.1 of the Criminal Code. (6) A failure to comply with this section does not affect the validity of an appointment or transaction. (7) A reference in subsection (1) to a person who has been convicted of an offence includes a reference to a person in respect of whom an order has been made 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 the offence. (8) In this section: > director, in relation to a life company that is an eligible foreign life insurance company, means a member of the Compliance Committee of the company.