If you are looking to appoint a new director to your company there are certain steps you must comply with to ensure the appointment meets the legal requirements prescribed by the Australian Securities and Investments Commission (ASIC).
A proprietary (Pty Ltd, limited by shares) company you must have at least one director, who ordinarily resides in Australia. If you are a public company, you must have at least three directors, at least two of whom must ordinarily reside in Australia. However, whether proprietary or public, the criteria for eligibility and registration of Directors is the same.
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Find out how to add a new director to your company
1. Check that they are eligible to be a director
In Australia there are certain criteria an individual must fulfil (or not) in order to be eligible to be a director of a corporation.
Who can be a director:
- A person who is at least 18 years of age
- A person who is willing to consent to taking on the roles and responsibilities of a director
Who cannot be a director:
- People who are undischarged of bankruptcy
- People who have entered in a personal insolvency agreement under the Bankruptcy Act 1966 and have failed to comply with the terms of that agreement
- Have been banned by ASIC or a court from managing a corporation under the Corporations Act 2001
- Have been convicted of various dishonesty related offences, such as fraud
2. Eligible Director to provide consent
The proposed new Director must provide written consent to the roles and responsibilities of being a director as specified in your company’s constitution. This consent must be given in written form. This written consent must be kept on file by the company, and the director’s personal details will be kept on the ASIC database. Any subsequent changes to officeholders of the company must be registered with ASIC within 28 days of the change in order to avoid late fees. For more information about officeholder consent forms and essential company documents, check out our previous guides.
3. Add the Director as an Officeholder Online
If your company is registered for online access and has account login details, you may simply add the new Director as an officeholder on the ASIC website. You may also make amendments to existing officeholders on the same platform.
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