Resigning or removing a company director – changes from 18 February 2021

Effective 18 February 2021, amendments have been made to existing legislation on back dating director resignations. ASIC has updated its guidance to reflect that:

• ASIC will no longer accept notice of resignation from directors which is dated more than 28 days prior to receipt
• if notice is received for a period of longer than 28 days, ASIC will determine the ‘effective date’ of resignation as the date it received the notice
• there will also be a fine associated with any late lodgement
• directors will remain responsible for duties as a director until the ‘effective date’ of resignation and will remain liable for the conduct of the company, such as a Director Penalty Notice (DPN) liability or insolvent trading.