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Succession planning for sole director/members — do you have a valid Will?

If you are a sole director and shareholder of a company, have you considered making a Will? Making a Will through Cleardocs is a simple, stress-free and cost-effective process. Indiana Bridges, Thomson Reuters

If the sole director and shareholder of a company die without leaving a will, the risk of uncertainty regarding the operation of the company is much greater because:

  • there is no one with the legal authority to make financial or business decisions on behalf of the company;
  • the company cannot be easily sold, as there is no legal owner of the shares who could authorise their transfer; and
  • it takes time (several months) to apply to the Supreme Court for letters of administration to manage the director's estate and during this time, the reputation of the company can also be severely impacted.

ASIC's information sheet: Importance of sole company directors/shareholders having a will outlines some of these issues.

More Cleardocs information on related topics

You can read earlier ClearLaw articles on a range of company related topics.

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Lawyer in Profile

Paul Ellis
Paul Ellis
Senior Associate
PH: 61 3 9258 3524

Paul is a Senior Associate in the Maddocks Commercial team with particular expertise in commercial agreements for the supply of goods and/or services, the Personal Property Securities Act 2009, the National Consumer Credit Protection Act 2009 and the National Credit Code and the Australian Consumer Law.

Paul's key areas of practice include:

  • Australian Consumer Law;
  • credit and securities law;
  • commercial law and contracting;
  • government contracts; and
  • trust and superannuation law.

Before joining Maddocks, Paul was employed for 13 years with the Victorian Department of Justice, principally as a Deputy Registrar in the Victorian Magistrate's Court, but also as a legislation, policy and project officer for the Department.