Resident Director Services

Under the Australian Corporations Act, all registered Australian companies must have a resident director.

Any person over the age of 18, who has not been disqualified from managing an Australian corporation, is eligible to be a director of an Australian company.

There are two types of company structures in Australia. One is a proprietary company (Pty Ltd.), the other is a public company (Ltd.). Proprietary companies require a minimum of one resident director. Public companies require a minimum of two resident directors, as well as one company secretary.

Yes, foreign persons are allowed to be directors of an Australian company. However, they cannot be the sole director of the company, as the Australian Corporations Act requires a resident director to be appointed for all Australian companies.

A nominee director will generally be required until the company sends a senior manager or executive who will reside in Australia and can act as the resident director of the company.

While a director’s involvement in the day-to-day management of the company is limited, their accountability is comprehensive. In certain cases, directors can be held liable where a company is involved in breach of law. This underscores their pivotal role in ensuring the company’s compliance with all legal and regulatory obligations.

Sections 201A(1) and 201A(2) of the Corporations Act 2001 contains information on residential requirements of directors, which differs between public and proprietary companies. However, the act does not clearly define the concept of “ordinarily resides” as it pertains to directors. Ordinarily resides can generally be interpreted as being settled or regularly living in Australia. This can include both Australian and non-Australian citizens.