March 2021

Disclaimer: The contents of this page are for general information only. They are not intended as professional advice and should not be relied upon for any purpose. Any specific situation should be analysed and assessed by a suitably skilled and experienced solicitor, barrister or other suitably qualified professional. Many people or their family, friends and associates trade through a company or are otherwise involved in the company. This may include as a director. Significant changes have been introduced for company directors when resigning. From 18 February 2021, new rules exist regarding the ‘effective date' of: - Resignations that are not notified to ASIC on time; and - Resignations of last remaining directors. These changes are part of ASIC’s continued push to eliminate illegal phoenixing activities. The government has, from 18 February 2021, commenced their new regime in relation to resigning directors The provisions are part of the aim to prevent companies from liquidating, winding up or being abandoned in order to avoid paying their debts. Directors must consider these new laws when planning to resign their position. Changes to the ‘effective date’ of a director’s resignation if notified late If ASIC is notified of a director's resignation more than 28 days after the resignation date, ASIC will now impose an ‘effective...

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