Reference no: EM131666046

Odumbe once owned a successful fishing company registered in Netherlands Antilles, a small country in the Caribbean. In 2001, the company was declared insolvent in that country. Odumbe became an undischarged bankrupt following a Court decision in Netherlands Antilles that Odumbe had breached his fiduciary duties to the company. Odumbe was ordered to pay damages of $100,000 in local currency for breach of his fiduciary duties in Netherlands Antilles. His brother Wasumbe owns a fishing company, Zulu Fishing Pty Ltd in Australia. To help out his brother, Wasumbe offered and Odumbe accepted the position of director of Zulu Fishing. Zulu Fishing currently has two directors.

Under Part 2D.6 of the Corporations Act, Odumbe:-

(a) Is automatically disqualified from managing Zulu because the breach of fiduciary duties is an offence under Australian law;

(b) Is not disqualified from being a director of Zulu because he is not "managing" Zulu as that term is defined in s206A of the Corporations Act;

(c) Is disqualified under the Corporations Act because he is an undischarged bankrupt of Netherlands Antilles;

(d) Is not disqualified from being a director of Zulu because there is no reciprocal agreement in which Australia recognises the bankruptcy of a Netherlands Antilles citizen and visa versa;

(e) Is disqualified as a director of Zulu because under Australian immigration laws, an undischarged bankrupt such as Odumbe cannot enter Australia.