NSW Resident Director definition

[Milena66]

My wife and I are directors of a private Pty Ltd Australian company, incorporated in Australia 20 years ago, our third director (an Australian resident - living and working in Australia has just passed away). We both live and work in London for 90% of the year. We do not own property in Australia but both have:
- a bank account
- Australian driving licence
- medibank card
- Australian ID card

My wife is an Australian citizen and I have been granted a Permanent Australian resident visa.

1) Can I be a Resident director of a private Pty Ltd Australian company?
2) Do we need to appoint (and pay for) a "resident director", since the Australian company has NO director residing in Australia?
3) Is it correct to say that since there was a resident director when the company was incorporated - there is non need for us to to appoint another "resident director"?

The Corporations Act - under section 201A - states that a Resident Director “must ordinarily reside in Australia.” “Ordinarily reside” is not defined by the Corporations Act(2001) and it seems that ASIC has not provided guidance on what constitutes a resident of Australia.
Thanks in advance

 

[Rob Legat - SBPL]

"Ordinarily reside" is a term of common usage, so it doesn't necessarily get a specific definition. ASIC also regularly does not give guidance on what terms like this mean. However, the requirement applies at all times - not just for registration.

Simply put, for an ordinary Pty Ltd company at least one director must 'live' in Australia. There are various ways to establish this, such as having a permanent residential address where they spend the majority of their time, and being domiciled in Australia for taxation purposes.

The short answers to your questions are:
1. If you live and work in London for 90% of the year: no.
2. Yes.
3. No.

 

[Romart]

Hi. Director of a Proprietary Company "Pty" (Limited by Share) can be both legal and natural persons who are residents of any country of the world.

 

[Romart]

Hi. Director of a Proprietary Company "Pty" (Limited by Share) can be both legal and natural persons who are residents of any country of the world. The minimum number - 1 director - a resident of Australia, endowed with all rights, except those in the exclusive competence of the shareholders (determined by the memorandum, articles of association of the company and/or the law). You better find out from people in your city who have dealt with it and understand it. The main thing is to do everything wisely, so that some envious people do not disqualify you with the help of ndandp.co.uk/. Be careful! Good luck)