Small Business Restructuring
Director Disqualification — Defend Your Right to Manage a Company
A director disqualification order can end your ability to operate a business, manage a company, or hold corporate office for years. Whether ASIC is commencing proceedings, you face automatic disqualification, or you are managing a company while disqualified, specialist legal advice is essential to protect your future.
⚠ AAT appeal deadlines and response periods in ASIC disqualification proceedings are strict — missing them can forfeit your right to challenge — submit your request now.
Does This Sound Like You?
Common situations we help with.
ASIC commencing disqualification proceedings against you
You have received a show cause notice from ASIC indicating it intends to disqualify you from managing corporations under section 206F of the Corporations Act 2001. ASIC has identified one or more failed companies in your history and is seeking to prevent you from acting as a director. You have a right to respond, and a well-prepared response supported by legal advice significantly improves your prospects of avoiding or reducing the period of disqualification.
Conviction for a company-related offence triggering automatic disqualification
You have been convicted of an offence involving dishonesty, failure to act in good faith as a director, or fraud in connection with the management of a corporation, which may trigger automatic disqualification under section 206B of the Corporations Act. Understanding whether automatic disqualification applies, for how long, and whether any exemption or leave application is available requires urgent legal review.
Concerns about acting as a director while disqualified
You are uncertain whether you are currently disqualified — perhaps due to a prior insolvency, unresolved ASIC proceeding, or overseas disqualification — and you want to clarify your status before continuing to manage a company. Acting as a director while disqualified is a criminal offence under the Corporations Act and can result in imprisonment and significant fines. Getting legal advice to confirm your status is always the right first step.
Applying for leave to manage a company while disqualified
You are currently disqualified but have a legitimate business reason to manage a specific company or act as a director. The court has a discretion under section 206G to grant leave to manage a corporation despite disqualification, subject to conditions. These applications require evidence of your rehabilitation, the circumstances of the original disqualification, and why allowing you to manage the specific company is in the public interest.
Disqualification after repeated company failures
You have been a director of two or more companies that were wound up with unpaid debts within the past seven years, and ASIC is relying on this pattern to disqualify you under section 206F. Responding to ASIC effectively requires addressing the circumstances of each failure honestly, demonstrating what has changed, and showing that the public interest does not require your permanent exclusion from corporate management.
AAT appeal of an ASIC disqualification decision
ASIC has made a disqualification order and you want to appeal to the Administrative Appeals Tribunal (AAT). The AAT conducts a merits review of ASIC's decision, meaning it considers the decision afresh rather than simply reviewing the process. A well-prepared AAT appeal — supported by evidence of business conduct, solvency considerations, and remediation steps — can result in the disqualification period being reduced or the order set aside.
How It Works
Specialist defence of director disqualification proceedings
Director disqualification proceedings have strict deadlines and require detailed, accurate submissions. Submit your request and we will connect you with a lawyer experienced in ASIC proceedings and AAT appeals — the initial consultation is free.
Submit Your Disqualification RequestSubmit your request
Tell us whether this is an ASIC show cause notice, an automatic disqualification, an AAT appeal, or a leave application — and the key facts about the companies involved.
Get matched with an ASIC proceedings specialist
We connect you with a lawyer experienced in ASIC enforcement proceedings, director disqualification defence, and Administrative Appeals Tribunal practice.
Prepare a strong response
Your lawyer will review the ASIC notice or order, identify the strongest grounds of response, and prepare a comprehensive submission or appeal within the applicable deadlines.
Up to 5 Yrs
ASIC disqualification orders can be made for up to five years — or permanently in serious cases
All 8 States
Requests matched to specialist lawyers across every state and territory in Australia
Free
Initial consultation — understand your rights and options before committing to any action
AAT Review
ASIC disqualification decisions can be appealed to the Administrative Appeals Tribunal for merits review
Before You Respond to ASIC
Practical questions about director disqualification.
What is the difference between automatic and court-ordered disqualification? +
Automatic disqualification under section 206B of the Corporations Act 2001 occurs by operation of law — no ASIC decision or court order is required. It is triggered by conviction for certain offences including dishonesty, fraud in connection with a corporation, or serious contraventions of the Corporations Act. Court-ordered disqualification occurs under section 206C or 206D following an application by ASIC or a liquidator, based on the person's conduct as a director. ASIC administrative disqualification under section 206F is a third category, made by ASIC itself where a person has been involved in two or more failed companies within seven years.
On what grounds can ASIC disqualify a person from managing corporations? +
Under section 206F, ASIC can disqualify a person if they have been an officer of two or more companies that were wound up with unpaid creditors within the past seven years, and ASIC is satisfied that the disqualification is justified having regard to the relevant matters including the person's conduct, the circumstances of the failures, and whether there are other relevant considerations. ASIC must give the person a written notice and an opportunity to respond before making the order. A lawyer can help you prepare a comprehensive and persuasive response to the show cause notice.
How long does a director disqualification order typically last? +
ASIC's administrative disqualification under section 206F can be for a maximum of five years. Court-ordered disqualification under section 206C or 206D can be for a specified period or permanently. Automatic disqualification following conviction for certain offences is typically for five years. The length of the order reflects the severity of the conduct, the number of company failures, and the impact on creditors. A well-prepared submission can influence the length of the period, particularly for ASIC administrative orders.
What does "managing a corporation" mean — does it include being a shadow director? +
Managing a corporation, as prohibited by a disqualification order, includes acting as a director, secretary, or other officer of a corporation; being involved in the management of a corporation; and acting as a shadow director — a person whose instructions the directors are accustomed to act in accordance with. A disqualified person who continues to give instructions to directors or otherwise exercises management control, even without a formal title, may be breaching the disqualification order and committing a criminal offence. The prohibition is broadly construed.
Can I apply to ASIC or the court for leave to manage a company while disqualified? +
Yes — under section 206G of the Corporations Act, a court can grant leave to a disqualified person to manage a specific corporation, subject to conditions. Applications are made to the court — not ASIC — and require evidence addressing the circumstances of the original disqualification, what has changed, the nature and purpose of the company the person wants to manage, and why the grant of leave is appropriate. Courts examine these applications carefully, and a well-prepared application supported by character evidence significantly improves the prospect of leave being granted.
What are the consequences of breaching a disqualification order? +
Acting as a director or otherwise managing a corporation while disqualified is a criminal offence under section 206A of the Corporations Act. The maximum penalty is imprisonment for 12 months and a fine of up to 50 penalty units. ASIC actively enforces disqualification orders, and convictions for breach have resulted in custodial sentences. A breach also strengthens any future ASIC action or AAT challenge, making it harder to have the original order set aside or reduced. If you are unsure whether a particular activity constitutes "managing" a corporation, seek legal advice before proceeding.
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