Directors' Resolution to Appoint Representative (Section 250D) (Circulating Resolution)
This Directors' Resolution allows a company to appoint a representative who can exercise the company's voting power where the company is a shareholder of another company.
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Last updated December 19, 2024
Under 3 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
Under section 250D of the Corporations Act 2001 (Cth), companies are able to appoint representatives to exercise their powers at meetings of another company, or in voting for circulating resolutions. To appoint a representative under Section 250D, the company's directors must pass a resolution to that effect. Users should ensure that any methods of authorisation are in accordance with the company's constitution.
The document allows users to limit this power to certain meetings.
This resolution can be inserted into:
Where you wish to pass the resolution in a directors' meeting, you must use the documents above. Simply copy and paste the text of the resolution.
The Legal Risk Score of a Directors' Resolution to Appoint Representative (Section 250D) (Circulating Resolution) Template
Our legal team have marked this document as low risk considering:
- There is a risk associated with the broad powers granted to the appointed representative, including signing for all resolutions and exercising all powers in meetings, which might lead to actions that could not align with all stakeholders' interests.
- The document does not specify any criteria or qualifications for the representative, potentially leading to the appointment of an individual who may not be adequately equipped to handle the responsibilities.
- The resolution relies on the unanimous agreement of all officeholders, which could be difficult to achieve in practice, potentially delaying important decisions.
Directors' Resolution to Appoint Representative (Section 250D) (Circulating Resolution) Checklist
Complete your free Directors' Resolution to Appoint Representative (Section 250D) (Circulating Resolution) with our checklist
Verify Signatures
Ensure that all officeholders who are entitled to vote have signed the document to confirm their unanimous agreement on the resolution.
Record Keeping
Maintain a copy of the signed resolution in the company’s records for legal and administrative reference.
Notify the Representative
Inform the appointed representative about their appointment and clearly communicate the scope of their powers and responsibilities.
Regular Review
Periodically review the effectiveness of the representative’s actions and the need for continued or modified representation to ensure alignment with the company’s objectives.
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