Practice Point – Keeping Director Details Current With ASIC
The importance of keeping director details up to date with ASIC cannot be understated.
Not only is it a legal requirement under the Corporations Act 2001 (s 205B), a failure to do so can have drastic consequences as one client we are assisting found out.
Our client, a director of a private company, moved interstate but ASIC was not notified of her change of address. Two years later she resigned as a director, but ASIC was not notified of the resignation.
The ATO, relying on ASIC information (as they are entitled to), issued a Director Penalty Notice (DPN) to our client’s old address. Our client naturally did not receive the DPN and so had no knowledge of it (until many years later). But non-receipt of a DPN is no defence (unless non-delivery can be proved). Our client was unable to answer the DPN or raise any defence to it within the prescribed time frame.
The company later went into liquidation and was subsequently de-registered. Nevertheless, in reliance on the DPN, the ATO continue to offset our client’s personal income tax refunds against her personal DPN liability.
This case shows the critical importance of keeping corporate secretarial work up to date and notifying ASIC of relevant changes in directors and their personal information. Directors who fail to ensure their details are up to date with ASIC, do so at their own peril.
Disclaimer: The information on this page is for general information purposes only and is not specific to any particular person or situation. There are many factors that may affect your particular circumstances. We advise that you contact Mathews Tax Lawyers before making any decisions.