Amendments to the Corporations Act which prevent directors from improperly backdating resignations or ceasing to be a director when this would leave the company with no directors take effect on 18 February 2021.
As a result of the changes:
- If a resignation of a director is reported to ASIC more than 28 days after the purported resignation, the resignation takes effect from the day it is reported to ASIC: section 203AA;
- Â A director may not resign from a company if doing so would leave the company without a director (unless the company is being wound up): section 203AB; and
- A director may not be removed by a resolution of members of a proprietary company if doing so director (unless the company is being wound up): section 203CA.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
