Resident Director Agreement
Our company understands that customers are careful to give partial control of their affairs to someone they don`t know. To reassure our clients, Healy Consultants Group PLC collects detailed due diligence for the directors we make available. Since the director is appointed exclusively to meet local legal requirements, the agreement between the resident ensures that the director follows the client`s instructions while respecting his legal obligations. In addition, a director who does not comply with the Directors` Responsibilities Act may be fined $200,000 and/or imprisoned for up to 5 years! Australian business managers, both at home and abroad, jointly take responsibility for the management and management of the company. Although the resident director is not primarily a general manager, he assumes the same risks and responsibilities as if he were actively involved in the activity. This service, offered to our international customers, is a low-cost and agile solution to overcome the obstacle to the appointment of a resident director. Normally, at a general meeting, dividends are declared, directors are elected, account controllers are defined and their remuneration is fixed, the company`s accounts and balance sheets are taken into account and all other « special operations » are carried out as necessary. The risks are even higher for local directors, since they automatically fall within the jurisdiction of the Australian justice system. Measures against foreign directors are generally difficult and costly, which is why most claims will primarily target the local manager. While the directors` legal obligations are imposed by CARA, the company imposes common law obligations on its directors.
Yes, yes. The Corporations Act stipulates that any private Australian company (or « Pty Ltd ») must have at least one director who « normally resides in Australia. » Of all the stakeholders in a company, the director is the principal, as he or she is the person responsible for managing the business of the company and gives him or her instructions. ACRA states: « A director must make objective decisions, act in the best interests of the company, avoid conflicts of interest and be honest and scrupulous in carrying out his duties. » It is important to note that if a company has only one director, the director may also be the sole shareholder of the company. In today`s communication age, the justification for a local director`s obligation is more than just an available point of contact. By having at least one person in a position of responsibility in the country, the government has more recourse if the company or its management does something wrong. It is therefore important that local directors are professionals with a good understanding of local corporate law. Similarly, the companies that hire them must provide local managers with sufficient information to perform their duties in accordance with legal requirements. SoEDs must have at least 2 directors based in Australia. Once an established director has been appointed, you may decide to appoint other directors of the company and they may be non-citizens.
One of asIC`s requirements when setting up a company in Australia is that all private companies registered in Australia must, at all times, have a resident in Australia as a director of the company. Therefore, when Healy Consultants Group PLC makes established directors available to our clients worldwide, we review mission officers to ensure their qualification for the role, while we enter into an agreement with the client to ensure adequate access to company information.