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property_agents_and_managers
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Disqualified personsĀ 

There are a number of reasons why you may be disqualified from holding a licence or certificate of registration under the Property, Stock and Business Agents Act 2002.

Convictions

A person is disqualified from holding a licence of certificate of registration (unless the Director-General has determined that the offence should be ignored) if the person:

  • has a conviction for an offence involving dishonesty that was recorded in the last 10 years; or
  • has a conviction in the last 10 years for an offence involving licence or certificate of registration lending. 

Bankruptcy

A person may be disqualified from holding a licence under the Act if they are an undischarged bankrupt, or, in the last 3 years as an undischarged bankrupt:

  • applied to take the benefit of any law for the relief of bankrupt or insolvent debtors,
  • compounded with his or her creditors, or
  • made an assignment of his or her remuneration for their benefit,

unless the Director-General is satisfied that the person took all reasonable steps to avoid the bankruptcy or other financial difficulties concerned.

The disqualification provisions relating to bankruptcy or involvement with a failed company do not apply to certificate holders. Certificate holders work under the supervision of a licensee who has an explicit duty in relation to supervision.

Corporations

A corporation may be disqualified from holding a licence under the Act if, at any time in the last 3 years, they were a director or person concerned with the management:

  • of an externally administered body corporate (within the means of the Corporations Act), unless the Director-General is satisfied that the person took all reasonable steps to avoid the body corporate becoming externally-administered.
  • of an externally managed body corporate within 12 months after the person ceased to be such a person and who failed while a director or person concerned with the management to take all reasonable steps to avoid the body corporate becoming externally administrated.

This does not apply in cases of voluntary winding up of the corporation.

A person is a disqualified person if the Director-General is satisfied they failed to take all such steps to avoid the body corporate becoming externally administered. The Director-General will serve a notice, giving the person the opportunity to make a submission about why they believe they took all the reasonable steps, within a period not being less than 14 days.

A licensee can be disqualified:

  • if they were involved in the management of a corporation that is subject of a winding up order,
  • if a controller or administrator has been appointed, or
  • if they were in the management of a corporation up to 12 months prior to an administrator being appointed.

A person may also be disqualified if they have been suspended or disqualified from holding an authority under another Act administered by the Minister of Fair Trading. The Director-General can overrule such a disqualification, at their discretion, if it is not relevant.

Other instances

You can download the full disqualified persons list from the Property Stock and Business Agents Act on the NSW Legislation website for more information about instances where a person can be disqualified or suspended from holding a license or certificate of registration.

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