Are you a company director? Do you hold that position for the purpose of maintaining your interest or investment in that company?
Have you ever thought about what would happen if you were to become injured or disabled to the point where you cannot attend meetings.
In this video, John Gallagher from Argon Law in Maroochydore will explain to you how you can protect those interests. Appointing someone as your attorney means they can sign documentation on your behalf but cannot step in as a company director in your absence.
You should, therefore, consider appointing an alternate director, who can step in as your substitute in the event that you cannot perform the role for any reason.
The appointment of an alternate director may be an important step to take to protect your investment in a particular business.
Are you a company director? Do you hold that position for the purposes of representing and protecting your interests and investment in that company?
If so, have you thought about what would happen if you were to be injured or become disabled to the degree that you could no longer attend board meetings or participate in the voting process?
It makes good sense for everyone to execute an enduring power of attorney by which you appoint someone to make decisions and sign documentation on your behalf in the event that you lose the capacity to do those things for yourself.
But appointing someone as your attorney doesn’t mean that they can substitute for you as a company director.
Directors need to be appointed in accordance with the company’s constitution and any other agreement between the shareholders.
You should therefore consider appointing an alternate director, who can step as your substitute in the event that you can’t perform the role for any reason.
Such an appointment needs to be made in accordance with the company constitution and other relevant agreements and legislation.
And although, like an enduring power of attorney, we hope no one will ever need to act under it, the appointment of an alternate director may well be worthwhile insurance to put in place to protect your valuable company investment.
If you want to know more about the appointment of alternate directors or other aspects of business succession planning please contact us on 07 5443 9988 or [email protected].
Argon Law is a Sunshine Coast law firm based in Maroochydore. We are commercial lawyers, body corporate lawyers and property lawyers and are eager to assist you in any way we can.
View Youtube channel youtube.com/ArgonLawMaroochydore