QBCC Licence Bans for Bankruptcy or Insolvency

Lawyers Qld specialise in Building and Construction Law including the unique area of QBCC Licensing for Builders and Contractors. We can advise on QBCC Licence bans flowing from Bankruptcy or the Appointment of Liquidators.

The law affecting QBCC Licence holders that are involved in a Bankruptcy event or the Appointment of Liquidators to a Building Company has recently changed. Currently the law treats Licensees differently depending on whether the Bankruptcy or Insolvency event occurred before or after 1 July 2015.

Call now on Brisbane or Regional Qld 0730365233 or Gold Coast 0756770533 to speak with a specialist QBCC Licence Lawyer now.

Who is affected by QBCC Excluded Individual Laws

You may be subject to a QBCC Licence ban of 3 years, 5 years or life if the QBCC determine that you became Bankrupt or entered into a Part IX or Part X agreement or are responsible for a Company failure.

QBCC Excluded Individual Licence Bans after 1 July 2015

The period of exclusion is 3 years from the date of the insolvency event for events that occur from 1 July 2015. A person involved in 2 separate insolvency events faces life exclusion.

For insolvency events that occur from 1 July 2015, a failed company will only lead to an exclusion if the company was a construction company. This means that it directly or indirectly carries out building work or building work services.

If you believe that the QBCC is wrong in asserting that you were associated with a failed Company that was a construction Company call Lawyers Qld immediately as this may be a defence to the imposition of the QBCC Licence ban and there are strict time limits to challenge the QBCC.

QBCC Excluded Individual Licence Bans before 1 July 2015

There are different laws governing Bankruptcy and Company failures which occurred prior to 1 July 2015. The main differences are that a QBCC Licence Ban of 5 years will be imposed and the Company failure can relate to any type of Company, it is not limited to a Construction Company. That being said the pre 1 July 2015 law provided that a person can be granted the status of a Permitted Individual in certain circumstances and allowed to continue to hold a QBCC Licence. For legal advice on QBCC Excluded Individual matters call Lawyers Qld QBCC Licence Lawyers on Brisbane or Regional Qld 0730365233 or Gold Coast 0756772533.

What does it mean to be an Excluded Individual

The personal licence of the QBCC contractor or nominee supervisor will be cancelled and they will be unable to reapply for another QBCC licence until their exclusion period ends.

In the case of a Company, QBCC will cancel the QBCC licence of the Director, Secretary, or Influential Person.

QBCC Permitted Individuals

For insolvency events that occur before 1 July 2015, a person who might be excluded due to their involvement in a financial failure may apply to QBCC to be excused for the event by becoming what is referred to as a “permitted individual”. To do so the person must prove they took all reasonable steps to avoid the causes of the relevant event.

A person will be able satisfy this test if they demonstrate that they;

Kept proper books of account and financial records.
Sought appropriate financial or legal advice before entering into financial or business arrangements or conducting business.
Reported fraud or theft to the Police.
Ensured that guarantees provided were covered by sufficient assets to cover the liability under the guarantees.
Put into place appropriate credit management for amounts owing and taking reasonable steps for recovery of the amounts
Made appropriate provision for Commonwealth and State Taxation debts.

For insolvency events that occur from 1 July 2015, a QBCC excluded individual is unable to apply to be a QBCC permitted individual.

Who does QBCC deem to be an "Influential Person"

An influential person for a company means “an individual, other than a director or secretary of the company, who is in a position to control or substantially influence the conduct of the company’s affairs, including, for example a shareholder with a significant shareholding, a financier or a senior employee”.

Call now on Brisbane or Regional Qld 0730365233 or Gold Coast 0756770533 to speak with a specialist QBCC Licence Lawyer now.