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Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019

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8840

2019-2020

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

 

Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019

 

 

(1)     Clause 2, page 2 (table item 3), omit “and 4”, substitute “, 4 and 5”.

 

[commencement]

(2)     Page 40 (after line 12), at the end of the Bill, add:

Schedule 5 Other provisions relating to directors

   

Corporations Act 2001

1  After section 184

Insert:

184A   Duties in relation to building products

             (1)  A director or other officer of a corporation commits an offence if:

                     (a)  the director or officer has a duty under this section; and

                     (b)  the director or officer fails to comply with the duty.

             (2)  A director or officer of a corporation that designs, manufactures, imports, supplies or installs external wall cladding products has a duty under this section to take all reasonable steps:

                     (a)  to acquire, and keep up to date, knowledge of matters about the safe use of external wall cladding products; and

                     (b)  to gain an understanding of:

                              (i)  the nature of the corporation’s business activities relating to external wall cladding products; and

                             (ii)  safety risks and non-compliance risks associated with external wall cladding products; and

                     (c)  to ensure the corporation has, and uses, appropriate resources to remove or minimise the risks mentioned in paragraph (b)(ii); and

                     (d)  to ensure the corporation has, and implements, appropriate processes:

                              (i)  to remove or minimise the risks mentioned in paragraph (b)(ii); and

                             (ii)  for receiving, considering, and responding in a timely way to, information about the risks mentioned in paragraph (b)(ii) and any incidents arising from the risks; and

                     (e)  to verify the resources and processes mentioned in paragraphs (c) and (d) are being provided, used and implemented.

2  Section 185 (heading)

Omit “ 184 ”, substitute “ 184A ”.

3  Section 185

Omit “184”, substitute “184A”.

4  Section 186 (heading)

Omit “ 184 ”, substitute “ 184A ”.

5  Section 186

Omit “184”, substitute “184A”.

6  Subsection 200E(4)

Omit “or 184”, substitute “, 184 or 184A”.

7  After section206EAB

Insert:

206EAC   Court power of disqualification—involvement in certain creditor-defeating dispositions

             (1)  On application by ASIC, the Court may disqualify a person from managing corporations for up to 20 years if:

                     (a)  the person is a director of a company; and

                     (b)  there is:

                              (i)  a creditor-defeating disposition of property of the company; or

                             (ii)  a disposition of property (whether before or after the commencement of this subsection) of the company that would have been a creditor-defeating disposition if the amendments made by the Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2019 had been in force at the time the disposition was made; and

                     (c)  the company, at any time (whether before or after the commencement of this subsection):

                              (i)  designs, imports, supplies or installs an external wall cladding product for a particular use; and

                             (ii)  the external wall cladding product is a non-conforming building product for that use; and

                     (d)  the Court is satisfied that the disqualification is justified.

             (2)  For the purposes of subparagraph (1)(c)(ii), a building product is a non-conforming building product for a particular use if one or more of the following apply:

                     (a)  the product is not safe for the use;

                     (b)  the product does not comply with the National Construction Code (as in force or existing from time to time);

                     (c)  the product does not perform, or is not capable of performing, for the use to the standard it is represented to perform by the company.

             (3)  In determining whether the disqualification is justified, the Court may have regard to:

                     (a)  the person’s conduct in relation to the management, business or property of any corporation; and

                     (b)  any other matters that the Court considers appropriate.

8  Sections 230 and 260E

Omit “and 184”, substitute “, 184 and 184A”.

9  Subsections 420A(2) and 442CB(3)

Omit “or 184”, substitute “, 184 or 184A”.

10  Paragraph 579(2)(a)

Omit “or 184”, substitute “, 184 or 184A”.

11  Paragraph 1274AA(1)(a)

After “206EAB,”, insert “206EAC,”.

12  After paragraph 1274AA(2)(aba)

Insert:

                  (abc)  every court order referred to in section 206EAC; and

13  Schedule 3 to the Act (after the table item dealing with subsection 184(3))

Insert:

Subsection 184A(1)

15 years imprisonment

 

[duties and disqualification of directors]