Resident Director

WHY DO I NEED A RESIDENT DIRECTOR?

All Australian companies are required under the Corporations Act to have an Australian-resident Director appointed at all times. Essentially, ASIC (Australian Securities and Investment Commission) will look beyond the veil of the corporate structure to identify the individuals controlling the company. It is compulsory that at least one of those Directors is resident in Australia so as to provide the authorities with an individual that can be held accountable for the Company’s actions or inactions subject to the jurisdiction of the Australian courts.

WHY NOT DO IT OURSELVES?

International businesses, must choose between using an external provider such as Lansdowne or else appointing their own locally resident staff, as a Director.
 
Whilst this may appear expedient, the reality is that the risks & obligations involved are such that most companies prefer to rely on the professional, independent & specialised services of a firm such as Lansdowne, rather than imposing heavy responsibilities on their own staff who may or may not be appropriately qualified for the role. This also prevents any issues associated with staff turnover which is a common challenge facing new businesses in Australia today.
 
Essentially, utilising a professional external service allows the business and its staff the flexibility to focus on growing the business in Australia, in the knowledge that they are legally compliant, they have professional support, and the ability to make changes quickly and effectively as business needs dictate.

RESPONSIBILTIES & RISKS FOR A RESIDENT DIRECTOR

All Directors of the Australian company (local and overseas) carry responsibility for the governance, management and control of that company. The Resident Director, being essentially a non-executive role, nevertheless carries the same risks and responsibilities as if he / she were actively involved in the business. Indeed the risk is significantly higher, in that the Resident Director automatically falls within the jurisdiction of the Australian legal system whereas actions taken against overseas directors tend to be difficult and expensive.

OUR REQUIREMENTS

Given the obligations & responsibilities associated with being a resident director, Lansdowne needs to be very specific about the clients it partners with. We are only interested in working with people of the highest integrity, looking to build an Australian business in full compliance with local regulations. Whilst we are happy to work with start-up businesses, we do need assurances around the ongoing liquidity & viability of the business, and importantly to have direct access to key decision makers as required (ie. overseas based Directors).
 
This is a two-way partnership. We will go well beyond the statutory minimum to help you succeed, but we expect the same degree of commitment from you in return together with a high degree of integrity in all our dealings.

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