Will I be disqualified as a director by ASIC?
If you have been a company director and you have been involved in two (2) or more companies within the last 7 years which have been placed into liquidation, then the Australian Securities Investment Commission(ASIC) may consider a director banning order against you. ASIC may also issue a director banning order if it has other grounds like:
• You have been convicted of fraud
• ASIC has reason to believe that the person is not of good fame or character; or
• ASIC has reason to believe that the person is not adequately trained, or is not competent
If you received a director banning order, this would mean that you would be unable to act as a company director or take part in the management of a company for the time period set out in the notice. The usual time period for a banning order is between one (1) to five (5) years, however it can be up to ten (10) years. A director banning order is not automatic and if you receive a notice setting out ASIC’s intention to issue an order, you will firstly be given an opportunity to appear at a private hearing and make submissions on the matter.
Furthermore, if you become personally bankrupt you would be unable to act as a company director or take part in the management of a company for the time period of your bankruptcy.
Call us today if you would like any more information about director disqualification on our toll FREE advice line on 1800 210 073.