Australia closes loophole on disqualified Kiwis

The Australian government will make it illegal for a person disqualified from running a company in New Zealand to manage a business in Australia.

Superannuation Minister Nick Sherry said the government was focused on taking practical steps that reinforce and improve the integrityof Australia's corporations and itsfinancial markets.

"This legislation will directly address a loophole in the existing law whereby people can effectively avoid disqualification by simply moving across the Tasman," Sherry said.

He said the amendments to theCorporations Act 2001 would further progress common regulatory frameworks across the Tasman.

The legislation will be modelled on the existing New Zealand provisions to ensure cross-border consistency.

"The amendments will mean that persons disqualified from managing companies by the New Zealand Registrar or a New Zealand court will be automatically disqualified in Australia," he said.

"Additionally, disqualification in another country will constitute a ground for the Australian Securities and Investment Commission to apply to an Australian court for an order that that person be disqualified in Australia.

- AAP