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its assets are insufficient to pay its liabilities, 273 or an administration order has been
made, 274 or an administrative receiver has been appointed. 275
The same can be said of the New Zealand provision which laid down the
circumstances in which the disqualification provision can be used. In Australia,
section 206D(1) empowers the court to make the order if it is satisfied that the
manner in which the company was managed contributed to its failure, either wholly
or partly. The meaning of the word ‗failure‘ in this context is described in the
following section 206D(2) and generally is similar to those circumstances listed by
the UK and the New Zealand Act. In Malaysia, however, the application of the
section is restricted to two or more companies which are in liquidation.
In New Zealand, section 385 gives powers to the Registrar to disqualify a person by
giving him or her notice informing of such disqualification, if the Registrar is
satisfied that the conditions listed in section 385(4) have been fulfilled. In contrast,
the other three jurisdictions empower the court to make the disqualification order. In
the UK, an application to the court can be made depending on the company‘s
situation, by the Official Receiver, liquidator, administrator or the administrative
receiver. 276 In Australia, the power is exercised by ASIC 277 while, in Malaysia, it is
273 See section 6(2)( a) of the UK Company Directors Disqualification Act 1986.
274 See section 6(2)( b) of the UK Company Directors Disqualification Act 1986.
275 See section 6(2)( c) of the UK Company Directors Disqualification Act 1986.
276 Section 7(3) of the UK Company Directors Disqualification Act 1986 – ―If it appears to the officeholder
responsible under this section, that is to say—
(a) in the case of a company which is being wound up by the court in England and Wales, the official
receiver,
(b) in the case of a company which is being wound up otherwise, the liquidator,
(c) in the case of a company in relation to which an administration order is in force, the administrator,
or
(d) in the case of a company of which there is an administrative receiver, that receiver.‖
277 Section 206C and section 206D of the Australian Corporations Act 2001.
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