Small business-appointing alternate directors

A director of a company may, with the other directors’ approval, appoint an individual to act as their alternate to exercise some or all of the director’s powers for a specific period.

Depending on the terms of the appointment, the appointing director may ask the company to give the alternate director notice of directors’ meetings and may terminate the alternate director’s appointment at any time (by giving the company notice of this in writing).

The company must notify ASIC within 28 days if a person is appointed, or stops acting, as a director, company secretary or alternate director by completing and lodging a Change to company details (Form 484 - online).

This form should also be used to tell us about any changes to the personal details of directors, company secretaries and alternate directors, – for example, changes in the name or residential address of the person.
We must also be notified of changes to the proposed expiry date (if any) during the appointment period. If an expiry date was provided at the time of appointing the alternate director then you don’t need to notify us when the alternate director ceases, but if the appointment was open ended you will need to tell us when it ends by lodging a Change to company details.

It is worth remembering that if you stop being a director this does not automatically end the term of the alternate director. A Change to company details must still be lodged with us to tell us about the cessation of both roles.

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Last updated: 04/11/2013 12:00