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Succession planning for sole director/members — do you have a valid Will?
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
Special Counsel
+61 3 9258 3524
paul.ellis@maddocks.com.au
Qualifications: LLB, Deakin University, BA (Political Science), Monash University
Paul is a Special Counsel in Maddocks Government and Not-for-Profit Commercial team. He specialises in:
- the establishment, governance, operations, regulation and administration of charities and other not-for-profit entities,
- in commercial arrangements for the procurement or supply of goods and services, including technology services, and
- in compliance and enforcement activities undertaken by government agencies.
Paul is Maddocks' main authority in relation to the Personal Property Securities Act 2009.
He has an in-depth understanding of the government sector, as his experience prior to Maddocks includes 13 years with the Victorian Department of Justice.
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