Oppressive OZschwitz regulator ASIC seeks to disqualify directors involved in four or more failed companies

THE corporate regulator is lobbying for law reform to give it powers to automatically disqualify directors who have been involved in four or more failed companies over a seven-year period.

If the law is changed it would increase the number of directors banned each year and reduce the amount of phoenix activity.

Under the current law, the Australian Securities and Investment Commission can seek to ban a director who has been on the board of two or more failed companies and a liquidator has lodged a report regarding the corporation's inability to pay its debts. A notice is served and the person then has the opportunity to demonstrate why they should not be disqualified.
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Introducing automatic disqualification provisions to include directors involved in four or more company failures where a section 533(1) liquidator report has been lodged for each of those companies would remove those directors without having to go through the disqualification process.

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Oppressive OZschwitz regulator ASIC seeks to disqualify directors involved in four or more failed companies

Oppressive OZschwitz regulator ASIC seeks to disqualify directors involved in four or more failed companies

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