New Zealand company directors banned from running businesses on this side of the Tasman will in future be automatically disqualified in Australia.
Australia's Minister for Corporate Law, Senator Nick Sherry yesterday introduced a law change to ensure individuals disqualified from managing companies in foreign countries would also be banned in Australia.
But the legislation would initially only affect banned company directors from New Zealand, he said in a statement.
"There is a gap in the existing law where individuals can avoid disqualification by moving to Australia," he said. This is totally unacceptable, so we'll be closing that gap."
Sen Sherry said he would discuss with other countries extending the disqualification regime to other jurisdictions in 2009.
Under the Corporations Amendment (No 1) Bill 2008, the Australian Securities and Investments Commission will have powers to apply for a court order to have the person disqualified, if a court in their home country has not previously done so.
