asic - poof goes the director

My friend John has a company with a family member Jane. Jane has a really big chest and spending habits to match. As a consequence one of Jane's creditors (funnily enough her lawyer - who was initially fooled by the big tits but eventually saw past them to discover he was one of many waiting creditors) did not get paid by Jane and so sued Jane and obtained judgement against her for say $20,000. John is tired of Jane's overspending and wants to know if Jane is still fit to act as a company director with this bad debt judgement against her.

Can John remove Jane as a director based on this bad debt and what would be involved in such a process?

Thanks for your helpful replies in the past hotcopperites.