Think of company directors as the captains of the business ship. They're the ones who guide the company's journey and steer it toward success. From important choices to daily operations, directors have a hand in it all.
Understanding the Company Director's Role
The company directors are the decision-makers for the company and will be the only ones who can sign off on company changes with ASIC and make decisions based on the wishes of the shareholders.
Directors do not automatically become shareholders, though can be both in Pty Ltd businesses.
Requirements for a Director
If your company follows the PTY LTD setup, you must have at least one director, and the director must ordinarily reside in Australia. This requirement ensures that the director is closely connected to the company's operations.
Directors will also need to have a registered Director ID. You can find out more about the Director ID application here: What is a Director ID
If you do not currently have a person who fits the Director requirements, Lawpath offers a Residential Director Service.
You can find out more about the Residential Director service by sending an email to [email protected], including your name, email, location, and business industry. We'll handle the rest and we'll reach out to you for the next steps.
Differences between a Director and a Shareholder
Shareholders of the company are the ones who legally own the company. If you are the only person involved in the company, you will be listed as BOTH director and shareholder.
You can find out more about a shareholder in our article here: What is a Shareholder