About the Convert to a Single Director Company

Back in the old days, a proprietary company needed two directors. The two directors of the Pty Ltd were generally just mum and dad.

Even though both of you may work in the business - you now only need one director.

What are the dangers of being a director? You can be personally liable for the company debts and taxes.

There is a real danger that if the company goes bust that the assets of BOTH mum and dad go to the creditors. The risk doubles when both of you are directors. There is no need for this added risk.

In the mid 1990's, the government changed the laws to allow single director proprietary companies.

But you can't do this unless the rules of the company are updated. (The company old rules require a minimum of two directors.) You need to check your existing constitution before you start building these documents.

The Company Constitution you get from LawCentral also include a Division 7A Loan Clause. This clause allows a company to lend money to a Member with a deemed provision complying with Section 109N(1)(a)of the Income Tax Assessment Act 1936.

This LawCentral document, prepares all the minutes needed to convert a 2 (or more) director company to a 1 director company.

Will this document fulfil your needs?

Would you like to know in advance whether this document contains all of the clauses and provisions you need?

Depending on how you answer the questions, there are many possible ways your final document will look. However, we have produced an example based on the most common answers.

To see a sample of what your ‘Convert to a Single Director Company’ will look like, click here.

Note: The sample of your ‘Convert to a Single Director Company’ may not be the complete document. Most of our samples only provide you with the first few pages of the document. If you wish to see the entire document, just purchase the document. If you are not happy with the document for any reason let us know and we will happily refund your money.

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