Directors are responsible for the management of a company’s business activities. Directors are only appointed in the case of companies (they’re absent from sole trader and partnership structures.
Some of a director’s duties include:
Normally, yes. Some basic requirements to be eligible to be a director of a company include:
Proprietary (Private) Company
A proprietary company must have at least 1 director. That director must ordinarily reside in Australia. If you’re just starting out and looking to open a Company, a Proprietary company is most likely the suitable structure for you.
A public company must have at least 3 directors (not counting alternate directors). At least 2 directors must ordinarily reside in Australia.
Source: Corporations Act (2001)
Yes, although it is not mandatory, the Public Officer is often also a Director of the company.
Yes, a Director can also be a Company Secretary. Bear in mind that:
Yes, companies will commonly change or appoint new Directors over time. If this is the case, you will need to notify ASIC of these changes within a month of making the change.
You can go here to find the form and procedure as stipulated by ASIC.
A Public Officer is the representative and point of contact between the company and the ATO. These obligations fall under Section 252 of the INCOME TAX ASSESSMENT ACT 1936. The public officer is therefore responsible for the company complying with the legislation and are liable for penalties should the company violate these responsibilities.
A company has only one public officer and the requirements are as follows:
A public officer does not have to also be a director of the company, though they often are
The company secretary is appointed by the directors to take on the responsibilities of compliance, legal obligations and administrative tasks of the board and the company. Specifically, some of the main duties include:
A company secretary does not automatically become an employee, and is not necessarily a director either.
The requirements on Secretaries depends on the company type:
Want to know what ABN, TFN, Company tax all mean?
Take a look through our comprehensive glossary.