Are you eligible to operate a business?
Some people are automatically disqualified from operating businesses or managing companies in Australia
A person cannot manage a business if they are:
- a bankrupt, or
- have been convicted of certain types of offences under s206B of the Corporations Act.
- have been convicted of certain types of offences under s32(1) of the Business Names Registration Act 2011.
If a person has been convicted of certain types of offences they are automatically disqualified from managing a company for five years.
ASIC can also disqualify or ban a person from managing a company for up to five years if:
- they have been involved in two or more failed (liquidated) companies in the last seven years, and
- a liquidator has lodged a report with ASIC for each of the companies about the companies' inability to pay its debts.
It is a serious criminal offence to manage a company when disqualified.
- INFO 14 Bankruptcy and personal insolvency agreements
- Notify ASIC of disqualification - How to notify us of your disqualification from holding a business name.