Court’s power of disqualification: insolvency and non‑payment of debts
206F Court’s power of disqualification: insolvency and non‑payment of debts
On application by the Registrar, the Supreme Court may disqualify a person from managing co‑operatives for up to 20 years if —
within the last 7 years, the person has been an officer of 2 or more entities (being co‑operatives or other corporations) when they have failed; and
the court is satisfied that —
the manner in which the entity was managed was wholly or partly responsible for the entity failing; and
the disqualification is justified.
For the purposes of subsection (1), an entity fails if —
a court orders the entity to be wound up because the court is satisfied that it is insolvent; or
the entity enters into voluntary liquidation and creditors are not fully paid or are unlikely to be fully paid; or
the entity executes a deed of arrangement and creditors are not fully paid or are unlikely to be fully paid; or
the entity ceases to carry on business and creditors are not fully paid or are unlikely to be fully paid; or
a levy of execution against the entity is not satisfied; or
a receiver, receiver and manager, or provisional liquidator is appointed in relation to the entity; or
the entity enters into a compromise or arrangement with its creditors; or
the entity is wound up and a liquidator lodges a report about the entity’s inability to pay its debts.
In determining whether the disqualification is justified, the Supreme Court may have regard to —
the person’s conduct in relation to the management, business or property of any entity; and
any other matters that the court considers appropriate.
[Section 206F inserted: No. 7 of 2016 s. 61.]
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