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17. What happens if a company does not have enough officers?


What happens if a company does not have enough officers?


A company is required to have a minimum number of directors and secretaries.


If the company does not have sufficient officers, it will be in breach of the requirements of the Corporations Act 2001.Therefore it is important that there is no time period during which a company does not have the minimum required number of officers and to ensure that new officers are appointed as quickly as possible to meet the minimum numbers.

 

The consequences of not having the minimum number of officers can be:

·         ASIC can serve a Penalty Notice on the company requiring the company to pay a penalty of $1062.50.

·         The company may also be prosecuted for failing in its statutory obligation to have the minimum number of officeholders.

A Proprietary company must have at least one director who must ordinarily reside in Australia.

It is not necessary for a proprietary company to have a secretary, if there is a one or more secretaries at least one of them must ordinarily reside in Australia.

A Public company must have at least 3 directors and at least 2 directors must ordinarily reside in Australia.

A Public company must have at least one secretary and at least one of the secretaries must ordinarily reside in Australia.



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