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Influential Person

The definition of ‘influential person’ has been strengthened in the legislation to enable the QBCC to take action against persons who control or substantially influence a company’s conduct but is not the director or secretary. This will enable QBCC to ban these persons when the construction company goes bankrupt or has its building licence revoked from holding a QBCC licence or running another company in the future.

Sometimes these influential people are known as shadow directors and distance themselves from responsibilities if things go wrong. For example, a person may appoint their spouse as the director of a company and effectively run the company through their spouse, without officially being an officer of the company. 

The new definition describes a number of activities, relationships, functions and roles that may result in a person being considered an influential person for a company. 

Excluded Individual

Section 56AC has been amended so that a person will be considered an ‘excluded individual’ if they were, within the period of two years immediately before a relevant company event happened, a director or secretary of, or an influential person for a construction company. Previously the timeframe was one year.

The section also amends the definition of ‘construction company’ to mean a company that directly or indirectly carries out building work or building work services in Queensland or another State. The amendment ensures that a construction company, as defined, includes a company operating outside of Queensland.

Visit this Exclusion due to insolvency for more information on exclusion due to insolvency.