How does a person become disqualified?
People who are undischarged bankrupts or have been convicted of certain offences (such as offences involving dishonesty with a minimum penalty of imprisonment for 3 months) are automatically disqualified from managing corporations. People who are disqualified from managing corporations under the Corporations Act 2001 are also disqualified from managing Aboriginal and Torres Strait Islander corporations, and vice versa. In some circumstances, the Registrar can apply to the court to have a person disqualified if they have breached the Act or been involved in 2 or more corporations that have experienced corporate failure. The Registrar can disqualify people from managing corporations (without seeking a court order) under some circumstances, provided that the person has had an opportunity to respond to a notice of the Registrar. The length of time that a person is disqualified for depends on why they were disqualified. The Registrar and the court have the power to grant leave to a disquali
