Corporate compliance is an absolute must. It is integral to the functionality of your company that you follow the correct protocol. This compliance is necessary both internally and externally. You must ensure that you fulfil any obligation you have within your company in terms of the rights and duties you owe to other members. Also, following regulatory body guidelines is just as essential. Whilst it may seem straightforward, there are a few key steps follow when you appoint a new officeholder of a company. In this article we’ll provide some information on what to do and the things to consider.
Types of officeholders
Officeholders or company officers are people that hold great responsibility in the running of a company. Their roles vary, but are all as equally important in your company. An officeholder will be any of the following roles.
- President or CEO (Chief Executive Officer)
- Treasurer or CFO (Chief Financial Officer)
- COO (Chief Operating Officer)
Steps in relation to your company
As well as external regulatory bodies, you will need to abide by your Company Constitution when making any new changes. In order to appoint a new officeholder of a company, it may be required to secure the majority vote of other members. Make sure that when going through this process, you are adhering to company internal rules, and maintain any agreements you have between parties. Each company is unique. Accordingly, this will vary from case to case. It is best practice to be aware of what you company rules state in relation to new appointments.
Steps for informing regulatory bodies
You are required by law to register officeholders with the Australian Securities and Investments Commission. Any changes to these positions must be recorded with ASIC. There is a portal on its website which lists the step by step guide for changing details in the ASIC database. When you appoint a new officeholder of a company, it is natural to assume that there has been a removal of a former officeholder. If this is the case, the removal process through ASIC’s online portal must also be reported.
Following the correct protocol is vital in the maintenance of your company affairs. There can be serious consequences for corporate malfeasance, and should be avoided at all costs. When in doubt, you should seek the advice of a company lawyer for help.