Appointing and Removing Company Directors in Australia

By on 22 Sep, 2023

In Australia, companies are required to have at least one director who is responsible for managing the company’s affairs and making decisions on behalf of the company. Appointing and removing company directors is an important process that requires careful consideration and adherence to legal requirements. Compliance with legal obligations, adherence to the company’s constitution, and consideration of shareholders’ views are essential throughout these processes. In this article, we will discuss the steps involved in appointing and removing company directors in Australia. Before taking any action to remove a director from office, you should consult your company’s governing documents such as: your constitution, the shareholder agreement; and the rules under Part 2D3 of the Corporations Act 2001, or the Replaceable Rules under Part 2B4. It is important that your directors...

Directors Duties in Australia

By on 19 Dec, 2020

Overview of Directors There are many different types of directors, such as executive and non-executive directors, managing director, independent directors, shadow directors, alternate directors, de facto directors, and nominee directors. In this article, we will address directors of Australian small-medium companies, who are registered as Office Holders with the Australian Securities and Investment Commission (ASIC), often referred to as De Jure Directors, especially in the UK and US. As a director, you must govern a company on behalf of the shareholders and ensure that a company operates at the highest possible standards and complies with the relevant governing legislations. Australian companies are primarily governed by the Corporations Act 2001 (Cth) and regulated by ASIC. ASIC is responsible for bringing civil or criminal proceedings against companies, the directors, and the...