The Australian Government recently updated the Corporations Act regarding director resignations. As of February 18, 2021, directors can no longer backdate their resignations. If you plan to resign as a director, you must notify ASIC in writing within 28 days. Otherwise, ASIC will record your resignation date as the lodgement date. For example, if you resign as a director on January 1, 2021, but notify ASIC on July 1, 2021, they will record your resignation date as July 1, 2021. A late fee will also apply.
Legal Responsibilities After Resignation
Resigning as a director usually ends your legal obligations, but you remain liable for actions taken during your tenure. Following the correct process is crucial. As trusted CPA accountants and tax agents in Inner West Sydney and Northern Beaches, we can guide you through each step.
Correct Resignation Procedure
Check your company’s constitution or ASIC’s replaceable rules to ensure compliance. Use the correct ASIC form to notify them of your resignation.
Handling Early Resignation Dates
If you notify ASIC within 28 days, you can request to backdate your resignation. We can help you submit the request.
Resignation Dates Beyond 28 Days
If more than 28 but less than 56 days have passed, you or the company can apply to ASIC using Form 502. This requires a valid reason and a fee. If ASIC approves, they will adjust the resignation date.
Court Applications for Late Resignations
If more than 56 days have passed, you must apply to the Court within 12 months unless you get an extension. If the Court grants an earlier resignation date, you must submit the Order to ASIC within two business days using Form 105.
Get Professional Help
Director resignations follow strict procedures. Seeking expert advice ensures compliance and avoids penalties. As leading CPA accountants in Inner West Sydney, Northern Beaches, and Adelaide, we provide expert support at every step.
