Resigning or removing a company director – changes from 18 February 2021

March 11, 2021

Effective 18 February 2021, amendments have been made to existing legislation on back dating director resignations. ASIC has updated its guidance to reflect that:

  • ASIC will no longer accept notice of resignation from directors which is dated more than 28 days prior to receipt
  • if notice is received for a period of longer than 28 days, ASIC will determine the ‘effective date’ of resignation as the date it received the notice
  • there will also be a fine associated with any late lodgement
  • directors will remain responsible for duties as a director until the ‘effective date’ of resignation and will remain liable for the conduct of the company, such as a Director Penalty Notice (DPN) liability or insolvent trading.