|Description||Pricing* (incl GST)|
|Successor Director Appointment (first director)||POA|
|Successor Director Appointment (each additional director of the same company)||POA|
|*Add $100 for hard copy documents|
Why should I have a Successor Director?
The appointment of a successor director to a company is vital for the smooth succession to a director’s role in many family and private companies.
Under most constitutions, the shareholders appoint the directors. However, in many family and private companies there are only two directors (typically spouses) who hold one share each. Thus, if either director loses legal capacity or dies, the remaining director of the company will effectively control the ongoing affairs of the company and decide who will be paid the deceased’s death benefit if the company acts as trustee to an SMSF. In this scenario, as each spouse has a 50% vote, a director who has lost capacity or died, will generally not have any legal right to have someone represent their interests.
Our documents enable a director to nominate someone who takes their role in the event they are unable to. The appointment of a successor director is relevant if there are separate beneficiaries who will ultimately benefit upon the death of the relevant member/director (eg, if one director has a second spouse and each have children to their prior relationships) then having someone represent their interests if they lose their capacity or die is recommended to ensure their benefits are dealt with in the most appropriate manner.
- Covering letter explaining the steps and documents to implement a successor director and completion checklist
- Nomination form
- Relevant consents to act and cease acting, as appropriate
- Relevant resolutions or minutes of directors and shareholders
- Related documents
Few SMSF deeds and company constitutions provide for the possible appointment of a successor director so generally a constitution upgrade to the DBA constitution is required to facilitate the appointment of a successor director. The DBA Lawyers’ SMSF deed is also recommended.
For more information and related articles
For more information on the advantages of having a successor director, click on the articles listed below: