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QLD Restrictions for Being a Managing Director - Australian Citizenship?

Discussion in 'Employment Law Forum' started by Marika, 17 June 2015.

  1. Marika

    Marika Member

    17 June 2015
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    Hi, I have a question in regards to being a Managing Director in a company. I was granted a Partner Visa a few months ago. I ordinarily reside in Australia, have Tax File Number (TFN), ABN but I am not an Australian citizen yet. Can I be the only Director in an Australian Company? That AU company was set up by a foreign company. ASIC states that the company need to have at least one director who "ordinarily reside" in Australia. Does it mean that the Director has to be an Australian citizen?

    Thank you for a reply.
  2. Ivy

    Ivy Well-Known Member

    10 February 2015
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    Ordinarily reside has a plain meaning, i.e. to usually live in Australia. It doesn't stipulate citizenship.
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  3. Tracy B

    Tracy B Well-Known Member

    24 December 2014
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    Hi Marika,

    The requirement ASIC states (1 director who ordinarily resides in Australia) is a requirement under the Corporations Act 2001 (Cth) (section 201A(1) for proprietary companies).

    Someone who "ordinarily resides" in Australia does not need to have Australian citizenship. But it does mean that:
    • Your home country is Australia, and
    • You leave Australia only temporarily. I assume this means up to 6 months out of every income year (and no more) as this would qualify you for non-resident status.
    This definition can be found under section 3 of the Australian Citizenship Act 2007 (Cth) as well as with the ATO for tax purposes. Both definitions are fairly consistent with one another.

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