InFocus November 2021 - Volume 30 Issue 9

Afg0001 Template Header Infocus Web Updated (2)

New ID requirement for directors - applications open

Company directors need to verify their identity as part of a new director identification number (director ID) requirement.

A director ID is a unique identifier that a director will apply for once and keep forever – which will help prevent the use of false or fraudulent director identities.

All directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation will need a director ID.

Corporations Act directors

When you must apply depends on when you were appointed as a director:

  • Existing directors have until 30 November 2022 to apply.
  • Directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of their appointment.
  • From 5 April 2022, intending directors must apply before being appointed.

The new Australian Business Registry Services (ABRS) is responsible for administering the director ID initiative. 

ASIC is responsible for enforcing director ID offences set out in the Corporations Act 2001. It is a criminal offence if you do not apply on time.

Visit the ABRS website for more information about director ID.

What is a company resolution?

A resolution is a formal way in which a company can note any decisions that are made at a meeting of company members. Under the Corporations Act 2001 (Corporations Act), most of the decisions that affect a company need to be made by a resolution. A company's constitution may also have its own rules about what decisions need to be made by resolution. 

There are two types of resolutions:

Ordinary resolutions – These resolutions only need a simple majority to pass (e.g. more than 50% of votes in favour to pass). Some decisions that usually can be made with an ordinary resolution include appointing an auditor, increasing or reducing the number of officeholders, or accepting a report at a general meeting. 

Special resolutions – The Corporations Act lists a number of company changes that need to be made with a special resolution. Special resolutions can only be passed with 75% of votes cast in favour at a meeting, and 100% of votes are needed to pass a special resolution without a meeting. Some changes that require a special resolution include changing a company name, voluntarily deregistering a company, or modifying a company's constitution. 

For more information about company resolutions, visit our website. 

Navigating the workplace landscape for the Cleaning Industry Webinar

Are you, or someone you know, working or operating a business in the cleaning industry? You are invited to register (and share this invitation) for the Fair Work Ombudsman’s free webinar tailored for the cleaning industry on Thursday 18 November 2021 from 2.00 pm to 3.00 pm AEDT.

Join the Fair Work Ombudsman's webinar to learn about your rights and obligations under the Cleaning Services Award 2020, as well as information about COVID -19 and workplace laws, and working in the gig economy. You will also learn about how to access and use key resources including the Pay and Conditions Tool, and templates and tools for keeping your own work records.

Extra super step when hiring new employees

From 1 November, if you have new employees start without choosing a specific super fund, you may need to request their 'stapled super fund' details from the Australian Taxation Office (ATO).

A stapled super fund is an existing account which is linked, or 'stapled' to an individual employee, so it follows them as they change jobs. This change aims to reduce the number of additional super accounts opened each time they start a new job.

You will be able to request stapled super fund details for new employees using Online services for business. For more information, visit the ATO website.

ASIC in the media

ASIC releases 2020–21 Annual Report

In the 2020–21 financial year, Australia’s financial system faced almost unprecedented challenges as a result of the ongoing COVID-19 pandemic. During this difficult period, ASIC remained focused on its vision of a fair, strong and efficient financial system for all Australians. Released on Friday 15 October, ASIC’s 2020–21 Annual Report outlines the key measures ASIC took to achieve its goals in that time.

ASIC issues Jobkeeper notice and guidance

ASIC recently issued a notice and guidance to help listed entities comply with their new obligation to disclose information about Jobkeeper payments to the market. ASIC has created a Jobkeeper notice to help listed entities comply. The notice is also available on the ASX and NSX websites.

ASIC provides relief for companies in external administration

ASIC issued regulatory relief to help reduce red tape and provide certainty for companies in external administration. The relief relates to certain financial reporting and annual general meeting (AGM) obligations which continue to apply when a company is in external administration.

 

Last updated: 03/11/2021 11:32