Resigning as a Director? Notify on time, because ASIC has changed processing procedures

As of 18 February 2021, ASIC is changing the way it processes director resignations following changes to the Corporations Act 2001 (Cth). The changes are part of a suite of reforms designed to prevent illegal phoenixing, but they also have the potential to result in greater exposure for company directors and ex-directors.

Resignations notified over 28 days afterwards will be deemed effective on notification date

Pursuant to the new section 203AA of the Corporations Act, ASIC will no longer accept ‘back-dated' resignations for directors. Any resignations that are notified to ASIC more than 28 days after the stated date of resignation will be treated as having occurred on the date of lodgment with ASIC (and not on the stated date). ASIC's records will therefore show the director having resigned on the notification date.