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Section 210b

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3.1 Under Section 210B of Corporation Act 2001 states that only an individual who is at least 18 may be appointed as a director of a company. Under Section 9 of the Corporation Act 2001, a director of a company is the person who is appointed to the position of a director or is appointed to the position of an alternate director and is acting in that capacity regardless of the name that is given to their position; and unless the contrary intention appears, a person who is not validly appointed as a director if they act in position of a director or the directors of the company or body are accustomed to act in accordance with the person’s instructions or wishes.

3.2 Under Section 201A (1) states that a proprietary company must have at least …show more content…
Until November Mrs Chard resigned as a director of the company. Mr Swan, who was an investor of the company, took a very active part of management of company but never formally appointed as a director or paid as an employee. What he contributed is more than an investor as he took a dominant management in the company.
3.5
According to Section 205B (5) of the Corporation Act 2001, if a person stops being a director, alternate director or secretary of the company, the company must lodge with ASIC notice of the fact within 28 days. The notice must be in the prescribed form (Form 484 Changes to company details for Australia companies). Subsection (5) does not apply if the person was an alternate director who stopped being a director in accordance with the terms of their appointment as an alternate director; or the person gives ASIC a written notice of the person's retirement or resignation as a director, alternate director or secretary of the company in accordance with section 205A. The written notice must be in the prescribed form, Form 370 (Notification by officeholder of resignation or …show more content…
It is possible for a director made a contract with the company to simultaneously be an officer and employee of the company.

3.7 The company should keep the employment contract to ensure the employment status. An employment contract is an agreement between an employer and employee that sets out terms and conditions of employment. The term and condition includes employees’ employment conditions, rights, responsibility and duties. Employees and employers must stick to a contract until it ends or until the terms are changed. The company should keep the letter of engagement that stated the emotional commitment the employee has to the organisation and its goal. Furthermore, the company should always check the payroll record regularly as well as the PAYG instalment application to identify the employment status such as the bonuses, commissions and wages paid.

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