Which law outlines the consequences for directors with unfit conduct during company management?

The Company Directors Disqualification Act 1986 specifically addresses the consequences faced by directors who exhibit unfit conduct in the management of companies. This law was enacted to protect the public and shareholders by disqualifying individuals from acting as company directors if they are found to be unfit due to a failure to comply with their duties or other specified misconduct.

The focus of this act is on ensuring that only those individuals who have demonstrated good management practices and adhere to legal obligations are allowed to serve in a directorship capacity. When a director is disqualified under this act, they lose the ability to manage or be involved with the company or any other companies for a specified period, thus serving as a deterrent against negligent or fraudulent behavior.

In contrast, while the Corporations Act lays down the broader framework for corporate governance and directors' duties, it does not specifically detail the consequences of unfit conduct in the same way as the Company Directors Disqualification Act. The Limited Liability Act primarily deals with the liability aspects of company formation and operation rather than directorial conduct. The Insolvency Act focuses on the handling of insolvency and bankruptcy issues, which may intersect with a director's conduct but does not directly address disqualification due to unfitness in management roles.