{"id":1265,"date":"2026-10-02T00:17:57","date_gmt":"2026-10-01T14:17:57","guid":{"rendered":"https:\/\/taylordavid.com\/?post_type=portfolio&#038;p=1265"},"modified":"2026-10-02T03:52:35","modified_gmt":"2026-10-01T17:52:35","slug":"overseas-directors-australian-companies","status":"publish","type":"portfolio","link":"https:\/\/taylordavid.com\/ar\/expertise\/overseas-directors-australian-companies\/","title":{"rendered":"\u0645\u062f\u0631\u0627\u0621 \u0627\u0644\u0634\u0631\u0643\u0627\u062a \u0627\u0644\u0623\u0633\u062a\u0631\u0627\u0644\u064a\u0629 \u0641\u064a \u0627\u0644\u062e\u0627\u0631\u062c"},"content":{"rendered":"<section class=\"pt-72\" style=\"padding-bottom: 48px;\">\n<div class=\"td-c g g-7-5 gap-64 ai-end\">\n<div class=\"stack gap-16\">\n<div class=\"breadcrumb\"><a href=\"\/expertise\/\">Expertise<\/a> \/ <a href=\"\/expertise\/reconstruction-and-turnaround\/\">Reconstruction &amp; Turnaround<\/a> \/ Overseas directors of Australian companies<\/div>\n<h1 class=\"serif fs-60 lh-108 balance\">Overseas directors of Australian companies: duties, liability and compliance<\/h1>\n<\/div>\n<div class=\"stack gap-20\">\n<p class=\"fs-18 lh-165 c-body2\">Living outside Australia does not reduce your exposure as a director of an Australian company. Every proprietary company needs a director who ordinarily resides in Australia, and every director needs a director identification number (director ID) before appointment. Duties, tax penalties and insolvent trading liability follow you abroad.<\/p>\n<div class=\"btns\"><a class=\"btn\" href=\"\/contact-us\/\">Send us an enquiry<\/a><a class=\"btn btn--outline\" href=\"mailto:info@taylor-david.com\">Email us<\/a><\/div>\n<\/div>\n<\/div>\n<\/section>\n<section class=\"pb-96\">\n<div class=\"td-c\">\n<div class=\"panel p-72\">\n<div class=\"td-takeaways\">\n<div class=\"eyebrow\">Key points<\/div>\n<ul>\n<li>A proprietary company needs a director ordinarily resident in Australia; a public company needs two (s 201A).<\/li>\n<li>Every director must apply for a director ID before appointment.<\/li>\n<li>A director penalty notice is taken to be given when the Australian Taxation Office (ATO) posts it, even if it never arrives.<\/li>\n<li>Parent-company executives who direct the subsidiary can be shadow or de facto directors.<\/li>\n<li>A resignation not notified to ASIC within 28 days takes effect only when notified.<\/li>\n<\/ul>\n<\/div>\n<div class=\"td-notice td-notice--top\" style=\"max-width: 820px; margin: 24px 0; padding: 20px 24px; border: 1px solid var(--green); background: #fff;\" role=\"note\" data-nosnippet=\"\">\n<p style=\"margin: 0; font-size: 16px; line-height: 1.6; color: var(--ink);\"><strong>General guidance only \u2013 not legal advice.<\/strong> Please obtain independent legal advice before relying on any of this information. The law is stated as at October 2026.<\/p>\n<\/div>\n<div class=\"prose article-body\">\n<h2>Does an Australian company need a resident director?<\/h2>\n<p>Yes. Under s 201A of the <em data-no-translation=\"\">Corporations Act 2001<\/em> (Cth), a proprietary company (&#8220;Pty Ltd&#8221;) must have at least one director who ordinarily resides in Australia. A public company must have at least three directors, at least two of them resident.<\/p>\n<p>&#8220;Ordinarily reside&#8221; turns on where a person actually lives, not citizenship. Foreign groups often appoint a local executive or professional nominee, who is a full director with full liability.<\/p>\n<h2>Do overseas directors need a director ID?<\/h2>\n<p>Yes. Every director of an Australian company must hold a director ID issued by Australian Business Registry Services (ABRS). Under s 1272C, a person must apply before the day they first become a director. Failing to hold one is a strict liability offence, with a maximum fine of 60 penalty units (currently $21,840).<\/p>\n<p>Directors outside Australia cannot apply online. They must lodge a paper application with identity documents certified by a notary public or at an Australian embassy or consulate. Allow several weeks.<\/p>\n<h2>Do directors&#8217; duties apply to a director living overseas?<\/h2>\n<p>Yes, in full. The duties of care, good faith and proper use of position and information (ss 180 to 184) apply to every director, wherever they live, as does the duty to prevent insolvent trading (s 588G).<\/p>\n<p>Distance is not a defence. A director who signs whatever head office sends is exposed like any local director. See our <a href=\"\/expertise\/directors-duties-and-personal-liability\/\">directors&#8217; duties and personal liability<\/a> page for each duty and the protections.<\/p>\n<h2>What are the biggest risks for a foreign-resident director?<\/h2>\n<p><strong><a href=\"\/expertise\/director-penalty-notices\/\">Director penalty notices<\/a>.<\/strong> Each director is personally liable for the company&#8217;s unpaid PAYG withholding, GST and superannuation. The ATO must give notice and wait 21 days before suing (<em data-no-translation=\"\">Taxation Administration Act 1953<\/em> (Cth), Schedule 1, s 269-25). The notice may be posted to the address ASIC holds for you (s 269-50). It is taken to be given when posted, not received (s 269-25(4)). For a director in Singapore or London, the 21 days can pass before it arrives.<\/p>\n<p><strong><a href=\"\/expertise\/insolvent-trading\/\">Insolvent trading<\/a>.<\/strong> If the subsidiary incurs debts while insolvent, a liquidator can recover creditors&#8217; losses from each director personally.<\/p>\n<p><strong>Shadow and de facto directors.<\/strong> Under s 9AC, &#8220;director&#8221; includes anyone who acts in the position without appointment, or whose instructions the appointed directors are accustomed to follow. A parent-company executive who routinely directs the Australian board can be caught. Courts look for a pattern, not isolated pressure: <em data-no-translation=\"\">Buzzle Operations Pty Ltd (in liq) v Apple Computer Australia Pty Ltd<\/em> [2011] NSWCA 109.<\/p>\n<p><strong>Disqualification and travel.<\/strong> ASIC can disqualify a person for up to five years after two company failures within seven years (s 206F). A director penalty is a personal tax debt, and the ATO can stop a tax debtor leaving Australia by departure prohibition order (<em data-no-translation=\"\">Taxation Administration Act 1953<\/em> (Cth), s 14S). Queensland work health and safety and environmental laws also impose personal duties on officers, wherever they live.<\/p>\n<h2>How should an offshore board manage its Australian subsidiary?<\/h2>\n<ul>\n<li><strong>Keep ASIC records current.<\/strong> The company must have an Australian registered office (s 142). Notify changes to it, and to directors&#8217; residential addresses (s 205B), within 28 days.<\/li>\n<li><strong>Have mail opened.<\/strong> Australian staff should scan ATO and ASIC mail to the board immediately.<\/li>\n<li><strong>Set clear delegations.<\/strong> Document who manages the company and how the board is informed. Delegations protect directors only if reasonable and monitored (ss 189 and 190).<\/li>\n<li><strong>Insurance and indemnities.<\/strong> Confirm D&amp;O cover extends to Australian claims. Put deeds of access and indemnity in place, within the limits in s 199A.<\/li>\n<li><strong>Resign properly.<\/strong> A resignation takes effect on the date you ceased only if ASIC is notified within 28 days (s 203AA). Otherwise it takes effect when notified, unless ASIC (within 56 days) or a court (within 12 months) fixes an earlier date.<\/li>\n<\/ul>\n<h2>What should you do if a notice or claim arrives?<\/h2>\n<ol>\n<li>Note the posting date. For a director penalty notice, the 21 days run from posting.<\/li>\n<li>Send it to an Australian lawyer immediately.<\/li>\n<li>Check ASIC&#8217;s record of the company and your own address.<\/li>\n<li>Gather current accounts, ATO balances and group funding records.<\/li>\n<li>If the company cannot pay its debts, take advice on <a href=\"\/expertise\/safe-harbour-for-directors\/\">safe harbour<\/a> and <a href=\"\/expertise\/voluntary-administration-and-restructuring\/\">voluntary administration or restructuring<\/a> before the deadline.<\/li>\n<\/ol>\n<h2>How Taylor David can help<\/h2>\n<p>We advise foreign groups, expatriate Australians and nominee directors on Australian law and Australian-based matters only. We can:<\/p>\n<ul>\n<li>advise on resident director, director ID and registered office compliance<\/li>\n<li>review group arrangements for shadow and de facto director risk<\/li>\n<li>respond to director penalty notices, <a href=\"\/expertise\/liquidator-claims\/\">liquidator claims<\/a> and ASIC inquiries<\/li>\n<li>draft delegations, deeds of indemnity and resignations<\/li>\n<li>advise boards on solvency and restructuring.<\/li>\n<\/ul>\n<p>This work sits within our <a href=\"\/expertise\/reconstruction-and-turnaround\/\">reconstruction and turnaround<\/a> and <a href=\"\/expertise\/insolvency\/\">insolvency<\/a> practices.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<section class=\"pb-96\">\n<div class=\"td-c g g-4-8 gap-80\">\n<div class=\"stack gap-16\">\n<div class=\"eyebrow\">Frequently asked questions<\/div>\n<h2 class=\"serif fs-44 lh-115\">Questions we are often asked<\/h2>\n<\/div>\n<div>\n<div class=\"faq\">\n<details open=\"\">\n<summary>Can a foreigner be the sole director of an Australian company?<\/summary>\n<div class=\"faq-a\">\n<p>Not unless they ordinarily reside in Australia. A proprietary company must have at least one director who ordinarily resides in Australia (s 201A). A person living abroad, whatever their citizenship, cannot be the only director. Foreign groups usually appoint a local executive or professional resident director alongside overseas directors. That person carries full responsibility.<\/p>\n<\/div>\n<\/details>\n<details>\n<summary>Is a nominee resident director liable for the company&#8217;s debts?<\/summary>\n<div class=\"faq-a\">\n<p>Yes, in the same way as any other director. The <em data-no-translation=\"\">Corporations Act<\/em> has no &#8220;nominee&#8221; or &#8220;non-executive&#8221; exception. A resident director is personally liable for insolvent trading, director penalties and breaches of duty. Anyone agreeing to act should insist on information rights, a parent indemnity, insurance and a clear exit.<\/p>\n<\/div>\n<\/details>\n<details>\n<summary>What happens if a director penalty notice is sent to my old address?<\/summary>\n<div class=\"faq-a\">\n<p>The notice is still effective. The ATO may post it to an address shown in ASIC&#8217;s records as your residence or business within the last seven days, and it is taken to be given when posted. If the 21 days pass without the company paying, entering administration or restructuring, or going into liquidation, the penalty becomes final.<\/p>\n<\/div>\n<\/details>\n<details>\n<summary>Can a parent company be liable for its Australian subsidiary&#8217;s debts?<\/summary>\n<div class=\"faq-a\">\n<p>Not merely as a shareholder. But a parent, or its executives, can be a shadow director if the subsidiary&#8217;s board is accustomed to follow their instructions. A holding company can also be liable for a subsidiary&#8217;s insolvent trading under s 588V if it knew, or should have known, of grounds to suspect insolvency.<\/p>\n<\/div>\n<\/details>\n<details>\n<summary>Can I resign from an Australian company from overseas?<\/summary>\n<div class=\"faq-a\">\n<p>Yes. Give written notice and ensure ASIC is notified within 28 days, or the resignation takes effect only when notified. You cannot resign if you would be the last director (s 203AB). Resignation does not end liability for your time in office, including director penalties for amounts that fell due before you left.<\/p>\n<\/div>\n<\/details>\n<\/div>\n<div class=\"td-notice\" style=\"margin-top: 24px; padding: 20px 24px; border: 1px solid var(--green); background: #fff;\" role=\"note\" data-nosnippet=\"\">\n<p style=\"margin: 0; font-size: 16px; line-height: 1.6; color: var(--ink);\"><strong>General guidance only \u2013 not legal advice.<\/strong> Please obtain independent legal advice before relying on any of this information. The law is stated as at October 2026.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<p><script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"FAQPage\", \"mainEntity\": [{\"@type\": \"Question\", \"name\": \"Can a foreigner be the sole director of an Australian company?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Not unless they ordinarily reside in Australia. 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Resignation does not end liability for your time in office, including director penalties for amounts that fell due before you left.\"}}]}<\/script><\/p>\n<section class=\"pb-112\">\n<div class=\"td-c stack gap-16\">\n<div class=\"eyebrow\">Related expertise<\/div>\n<div class=\"td-chips-links\"><a class=\"btn btn--line\" href=\"\/expertise\/reconstruction-and-turnaround\/\">Reconstruction &amp; Turnaround \u2192<\/a><a class=\"btn btn--line\" href=\"\/expertise\/insolvency\/\">Insolvency \u2192<\/a><a class=\"btn btn--line\" href=\"\/expertise\/litigation\/\">Litigation \u2192<\/a><\/div>\n<\/div>\n<\/section>\n<section class=\"bg-green\">\n<div class=\"td-c g g-7-5 gap-64 ai-center\" style=\"padding-top: 88px; padding-bottom: 88px;\">\n<h2 class=\"serif fs-52 lh-108\">The earlier we talk, the more options you have.<\/h2>\n<div class=\"stack gap-20\">\n<p class=\"fs-18 lh-16 c-on-green-muted\">To discuss your situation in confidence, call Scott D. Taylor on <a style=\"text-decoration: underline; text-underline-offset: 3px;\" href=\"tel:+61732299800\">+61 7 3229 9800<\/a>, email <a style=\"text-decoration: underline; text-underline-offset: 3px;\" href=\"mailto:info@taylor-david.com\">info@taylor-david.com<\/a> or <a style=\"text-decoration: underline; text-underline-offset: 3px;\" href=\"\/contact-us\/\">send us an enquiry online<\/a>.<\/p>\n<div class=\"btns\"><a class=\"btn btn--light\" href=\"\/contact-us\/\">Send an enquiry<\/a><a class=\"btn btn--light\" href=\"mailto:info@taylor-david.com\">Email us<\/a><\/div>\n<\/div>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>\u0645\u062f\u064a\u0631 \u0634\u0631\u0643\u0629 \u0623\u0633\u062a\u0631\u0627\u0644\u064a\u0629 \u0645\u0646 \u062e\u0627\u0631\u062c \u0627\u0644\u0628\u0644\u0627\u062f\u061f \u0642\u0648\u0627\u0639\u062f \u0627\u0644\u0645\u062f\u064a\u0631 \u0627\u0644\u0645\u0642\u064a\u0645\u060c \u0648\u062a\u062d\u062f\u064a\u062f \u0647\u0648\u064a\u0629 \u0627\u0644\u0645\u062f\u064a\u0631\u060c \u0648\u0627\u0644\u0645\u0633\u0624\u0648\u0644\u064a\u0629 \u0627\u0644\u0634\u062e\u0635\u064a\u0629\u060c \u0648\u0643\u064a\u0641\u064a\u0629 \u0627\u0644\u0627\u0633\u062a\u062c\u0627\u0628\u0629 \u0644\u0644\u0625\u0634\u0639\u0627\u0631. \u0645\u062d\u0627\u0645\u0648\u0646 \u0641\u064a \u0628\u0631\u064a\u0633\u0628\u0627\u0646.<\/p>","protected":false},"featured_media":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_yoast_wpseo_title":"Overseas Directors of Australian Companies | Taylor David","_yoast_wpseo_metadesc":"Director of an Australian company from abroad? 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