171EFinancial probity requirements

171E Financial probity requirements S. 171E(1) amended by No. 40/2021 s. 25(1). (1) For the purposes of an application for registration under section 171(1)(a), the financial probity requirements are as follows— (a) if the application is for registration as a builder in order to carry out domestic building work with a cost of more than the prescribed amount, whether the applicant is eligible to be covered by the required insurance in relation to managing, arranging or carrying out domestic building work with that cost; (b) if the application is for any other category or class of registration, whether the applicant is covered by the required insurance; (c) whether the person is or has been— (i) an insolvent under administration; or (ii) an externally administered body corporate within the meaning of the Corporations Act; (d) whether the person has, is or has been disqualified from managing corporations under Part 2D.6 of the Corporations Act; (e) whether an insurer has ever declined, cancelled, or imposed special conditions in relation to, the provision of professional indemnity insurance, public liability insurance or any other indemnity insurance in relation to the person in relation to work as a building practitioner in Victoria or in an equivalent occupation in the building and construction industry in another State or Territory; (f) whether the applicant or, in the case of an applicant that is a body corporate, any director of the body corporate, has outstanding— (i) any judgment debt for an amount recoverable by an insurer under a policy of insurance for domestic building work referred to in section 137A or 137B that has not been satisfied within the period required for satisfaction of that debt; or (ii) any judgment debt for an amount owed to the Authority as a debt due under this Act that has not been satisfied within the period required for satisfaction of that debt; or (iii) any judgment debt for an amount payable in relation to a domestic building dispute that has not been satisfied within the period required for satisfaction of that debt; or (iv) any amount payable under any dispute resolution order (within the meaning of the **Domestic Building Contracts Act 1995**) or VCAT order requiring the payment of an amount in relation to a domestic building dispute that has not been paid within the period required for compliance with that order; or S. 171E(1)(f)(v) substituted by No. 43/2025 s. 60. (v) any adjudicated amount that has not under section 28M of the **Building and Construction Industry Security of Payment Act 2002** been paid or released on or before the relevant date; S. 171E(1)(fa) inserted by No. 3/2020 s. 24(1). (fa) whether the applicant or, in the case of an applicant that is a body corporate, any director of that body corporate was a director or secretary of, or an influential person in relation to, a body corporate within 2 years before the body corporate went into external administration within the meaning of the Corporations Act; (g) whether the applicant is a director of a body corporate that has outstanding any judgment debt or unpaid amount referred to in paragraph (f); (h) whether the applicant was a director of a body corporate that had outstanding any judgment debt or unpaid amount referred to in paragraph (f) at the time the applicant was a director; (i) whether the person has failed to meet any other financial probity criteria prescribed by the regulations. S. 171E(1A) inserted by No. 40/2021 s. 25(2). (1A) For the purposes of an application by a person for registration as a builder subcontractor under section 171(1)(ab), the financial probity requirements are— (a) whether any of the matters in subsection (1)(d) and (f)(ii) to (v) apply to the applicant or, if the applicant is a body corporate, any director of the body corporate; and (b) whether the applicant is a director of a body corporate that has outstanding any judgment debt or unpaid amount referred to in paragraph (f)(ii) to (v); and (c) whether the applicant was a director of a body corporate that had outstanding any judgment debt or unpaid amount referred to in paragraph (f)(ii) to (v) at the time the applicant was a director. S. 171E(2) def. of *influential person* inserted by No. 3/2020 s. 24(2). ***influential person*** in relation to a body corporate means a natural person, other than a director or secretary of the body corporate, who is in a position to control or substantially influence the body corporate's conduct but does not include— (a) a person who gives professional advice to the body corporate (other than in the person's capacity as an employee of the body corporate) that influences the body corporate's conduct; or (b) a person employed or engaged by a State, Territory, local government or the Commonwealth who when performing a function under this Act, another Act or law in another jurisdiction influences the body corporate's business; or (c) an administrator, controller, provisional liquidator or liquidator within the meaning of section 9 of the Corporations Act; S. 171E(3) inserted by No. 3/2020 s. 24(3). (3) For the purposes of the definition of ***influential person*** in subsection (2), a person is taken to be an influential person in relation to a body corporate if the person— (a) is the chief executive officer or general manager of the body corporate, or holds an equivalent position in the body corporate or is acting in that position; or (b) directly or indirectly owns, holds or controls 50% or more of the shares in the body corporate, or 50% or more of a class of shares in the body corporate; or (c) gives instructions to an officer of the body corporate and the officer generally acts on those instructions; or (d) makes, or participates in making, decisions that affect the whole or a substantial part of the body corporate's business or financial standing; or (e) engages in conduct or makes representations that would cause someone else to reasonably believe the person controls, or substantially influences, the body corporate's business. S. 171F inserted by No. 21/2017 s. 7.