Director Resignation Date
When a director resigns from a company, ASIC must be notified. But what is the effective date of the change?
An outgoing director can notify ASIC of their resignation using a form 307. That form along with a copy of the letter of resignation must be lodged with ASIC. There is no lodgment fee. If done within 28 days of the date of the change, then the effective date of change will be the date of resignation.
The company must still lodge a notice of change using a form 484. This is required to be lodged within 28 days of the date of change and if that occurs the effective date of change is the date of resignation. There is no lodgment fee if the form is lodged within 28 days of the change occurring. After that date, late lodgment penalties have to be paid.
But what happens if the notification is not made within that 28 days? In such a case, the effective date of resignation is the date of notification.
Why is this important?
Firstly, because a director’s rights and responsibilities continue until they resign.
Secondly, to fix a resignation date that is more than 28 days but less than 56 days over due, an application must be made to ASIC using a Form 502 Application to change the cessation date of a director, providing reasons for the application. A fee ($42.00 as at May 2021) will apply.
Thirdly, to fix a resignation date that is more than 56 days but less than one year over due, an application must be made to the Court. This could be very costly.
If it is the case that your company has failed to notify ASIC of a change in directors within 28 days and you need assistance to have the date of resignation set to the actual date of resignation, contact us.