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Who can be a director?

Anyone involved in the affairs of a company may be considered a director even if they are not appointed. [Corporations Act 2001 (Cth) s 9 — definition of "director")]. It is usual for a prospective director to sign a consent form.

To be a director a person must be:

  • Over 18 years of age
  • Not be an undischarged bankrupt or subject to a personal insolvency agreement Part X of the Bankruptcy Act 1966 (Cth)
  • Not otherwise disqualified from holding an office in a company [Corporations Act 2001 (Cth) s 206C — s 206F]

Certain criminal offences involving dishonesty also disqualify a person from holding office in a company for a period of 5 years.

A company must have at least one director. If a director is automatically disqualified for any reason or dies, the company no longer has anyone to manage its affairs. In the case of disqualification, a personal representative such as the trustee in bankruptcy may appoint an alternate director. In the case of the death of the sole director, the executor may appoint a new director [Corporations Act 2001 (Cth) s 201F].

Who can be a director?  :  Last Revised: Fri Oct 2nd 2020
The content of the Law Handbook is made available as a public service for information purposes only and should not be relied upon as a substitute for legal advice. See Disclaimer for details. For free and confidential legal advice in South Australia call 1300 366 424.