{"id":288,"date":"2010-08-12T08:45:26","date_gmt":"2010-08-12T08:45:26","guid":{"rendered":"http:\/\/www.dbalawyers.com.au\/dev\/wordpress\/?page_id=288"},"modified":"2021-11-25T22:35:00","modified_gmt":"2021-11-25T11:35:00","slug":"successor-director-appointment","status":"publish","type":"page","link":"https:\/\/www.dbalawyers.com.au\/successor-director-appointment\/","title":{"rendered":"Successor Director Appointment"},"content":{"rendered":"
\"download<\/a><\/div>\n\n\n\n\n\t\n\n\t\n\t\n\t
Description<\/th>Pricing* (incl GST)<\/th>\n<\/tr>\n<\/thead>\n
Successor Director Appointment (first director)<\/td>POA<\/td>\n<\/tr>\n
Successor Director Appointment (each additional director of the same company)<\/td>POA<\/td>\n<\/tr>\n
* Additional fees for hardcopy documents apply. Click here<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

Why should I have a Successor Director?<\/h3>\n

The appointment of a successor director to a company is vital for the smooth succession to a director\u2019s role in many family and private companies.<\/p>\n

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\u2019s 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.<\/p>\n

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.<\/p>\n

What\u2019s included<\/h3>\n