Under the provisions of the Queensland Building and Construction Commission Act 1991 (Qld) (the “QBCC Act”) individuals who hold building licenses with the Queensland Building and Construction Commission (“QBCC”) will have their licenses cancelled if they:
- Become bankrupt, or enter into a Part IX or Part X agreement under the Bankruptcy Act 1966 (Cth);
- Are a director, secretary or influential person of a company (which is involved in the building and construction industry) at the time which a Provisional Liquidator, Liquidator, Administrator or Controller is appointed to the company, or held such a position at any time during the one year period prior to such an appointment.
If one of these events occurs, the QBCC will deem a person to be an “excluded individual”, meaning that they will be excluded from holding a building licence, or being able to control a company which is licenced with the QBCC for three years (or for events which occurred prior to 1 July 2015, five years). If two or more of these events occur, the QBCC will likely exclude a person from holding a building licence or controlling a QBCC licenced company for life. This may include circumstances where a person:
- Is a director or secretary of two or more related companies which are placed in liquidation; or
- Is made bankrupt as a result of personal guarantees which he or she has given in respect of debts owed by a failed company.
Given the above matters it is extremely important for individuals and company directors with QBCC licences to obtain proper advice if facing financial difficulty.