Library

Our library contains various notes on tax, legal, accounting and general business matters.

Acting as director of Australian companies

We provide directors of different levels. There is no such concept as a nominee director. We provide Australian resident professional directors with limited experience as well as those with extensive experience, depending on the client’s needs. The directors may be from the Starting in Australia team or they may be unrelated.

Acting as a director of an Australian company is fraught with risk, due to the very strict legal obligations that apply in relation to the duties of directors in Australia. More and more persons are refusing to act as director for this reason. It is critical for the Australian subsidiary to have a director who is familiar with these legal obligations. Appointing an expatriate (sent to Australia by the head office) as the sole Australian resident director is a very high risk move, as it results in both the company and the director being seriously exposed.

Separately, the company law requires that at least one director be ordinarily resident in Australia. We see all too many cases where this requirement is satisfied by appointing a recent expatriate, without there also being a ‘knowledgeable’ Australian director. Even if that expatriate knows the groups’ business well, it is, as noted above, a high risk move.

Accordingly, we recommend that great care be taken to ensure that a knowledgeable Australian director be appointed.

See also under Resources for links to other informative websites of relevance to those investing in Australia..

UK Trade and Investment Agency, Sydney – joint Webinar with Starting in Australia – October 2013

UK Trade and Investment Agency, Sydney – joint Webinar with Starting in Australia – February 2013