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ARTICLE · 16 FEBRUARY 2022

Sole director issue - finally resolved!

Piper Alderman
Piper Alderman
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An update to the sole director issue.

AustraliaCorporate/Commercial Law
Greg Conomos
Greg Conomos
Gillian Xu
Gillian Xu
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Prior to the passing of the Corporations Amendment (Meetings and Documents) Bill 2021 (Bill) there was a lot of confusion surrounding the signing and execution of company documents by proprietary companies with a sole director and no company secretary. Before this Bill, section 127 of the Corporations Act 2001 (Cth) (Act) did not allow single director proprietary companies to validly execute documents and deeds, or rely on the statutory assumptions set out in section 129 of the Act. This article provides an update to the sole director issue that was discussed in Playing It Safe - Are your contracts binding and enforceable on all parties? This article will explore the new amendments introduced by the Bill and how this will affect proprietary companies with only an appointed sole director.

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