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Old 30-06-12
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Default ABN/ACN Numbers Changing

Hi all you wonderful people,

Our Company ABN/ACN number is changing. Are we required to advise our existing clients (we sending out notifications of new bank details), or is this not necessary.

We are obviously recording the new numbers on our letterheads.

Thanks all :-)

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Old 30-06-12
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Default Re: ABN/ACN Numbers Changing

Hi HappyGirl,

If your ACN/ABN are both changing, this suggests you are actually setting up a new 'entity' of some form? If so, I would suggest that existing clients are informed of the new details. A lot of people will have put your 'current' details into their accounts systems and may not even notice a new entity name or number on future correspondence.

I'm honestly not certain whether you are legally required to notify them of not, but if you are sending out communication about new bank details anyway, can't hurt to include any other 'new' info they may need to know... could keep things a lot 'cleaner' for your clients in the future... otherwise, they might keep paying (according to their records) a particular entity with a particular ABN only to realise down the track that these actually changed at some point in time and then they would have the tedious task of having to go back through records and fix up etc. They may not be too pleased to have not been notified in that situation.

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Old 30-06-12
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Default Re: ABN/ACN Numbers Changing

Hi HappyGirl,

As Jacqui has rightly noted, a new ACN / ABN suggests that the entity through which you trade has actually changed (almost certainly this is the case if the ACN has changed). And a change of legal entity is quite fundamental. Quite apart from simply notifying your clients of the new ACN / ABN and bank details, you might turn your mind to whether or not a new entity affects any existing contracts that might be in place with your clients (and indeed suppliers). For example, if you previously traded through Entity A, and it entered into a contract with your client/supplier, Entity B, your new entity, being Entity C, isn't necessarily a party to that contract. Entity C might therefore be unable to enforce the contract (e.g. for payment or other action) should that become necessary.

You might also consider how your existing business legally moved from the old, to the new, legal entity.

Sorry to be so pedantic (and possibly annoying) about it all but I would suggest that, if you haven't done so already, you take some advice on this issue. Perhaps from the person who set up the new entity for you?

All the best with it

Richard

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Old 30-06-12
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Default Re: ABN/ACN Numbers Changing

Thanks Jacqui and Richard,

Nope absoultely not annoying - the more pedantic the petter as that is how you make sure that all your t's are crossed.

I will follow up on Monday as I don't have sufficient details, all i know is that the banking details are ABN/ACN numbers change, but the Company name remains the same.

Thanks again for your help so far, may well have to come back for me or if you don't mind.

Enjoy the weekend :-)

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Old 30-06-12
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Default Re: ABN/ACN Numbers Changing

Hi Happygirl,

Please do come back with an update... The ACN is more so the 'identifier' of a company in Australia than the actual name, so, if that's changed/changing it really does suggest a new entity is being formed... how that would really happen with the exact same name, I'm not sure. (Off the top of my head, it would suggest the first company needs to be de-registered from the first ACN before the name will be available again for the second company/ACN to be set up) So, seems like there will be some more information once you follow up on Monday and I would be interest to know what you come up with.

Enjoy the rest of your weekend too

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Old 01-07-12
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Default Re: ABN/ACN Numbers Changing

Hi There again,

I am really curious about this, and not sure how much will be told to me, but from what I can see we deregistered the existing company name, registered a new one and then simply swopped names around. ie. the new company abn/acn still holds the same name, and the previous ABN is now registered under a new name which I think is simply being done from an accounting aspect and we will not be using it for business purposes. i.e. long way around - the company name has not changed, the only thing that has changed is the ABN.

My main focus is communication with existing clients regarding this and being curious. I am like a dog with a bone :-)

Thanks all :-)

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Old 01-07-12
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Default Re: ABN/ACN Numbers Changing

Now you've got me curious

Well, if the first entity has been de-registered and now a new company formed etc Richard's points concerning existing client contracts is an important one. If your task is the communication of information and you're not a director/officer of the company, then that side of things probably won't be your problem at the end of the day - but, could prove interesting if the company does try and enforce contract terms when they're not actually a party to the contract. Most contracts will have the company name as well as ACN or ABN - so, even by using the same name in the new entity, chances are there's something in any contracts or agreements that would demonstrate it's no longer the same entity.

In any event - good luck with your information collecting!

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Old 01-07-12
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Default Re: ABN/ACN Numbers Changing

Hi Jacqui,

Thanks again - you are such a wonderful contributor to all these forums. I love the efforts you put into everyones posts, and wish I had the knowledge you had.

I am not a director of the Company, simply have been tasked with making sure all is done with limited info.

Very interested now - and more for my own knowledge as well. Does that even though the only thing that has changed in our existing client agreements is our ABN/ACN Number and our Company Name is still the same, these could potentially cause existing contracts to be invalid.

Very interesting I did not realise that a change in ABN/ACN for simple Accounting reasons could cause so many other things to be addressed :-)

Enjoy your afternoon, I am going to be a couch lay about, but very curious about our existing contracts now.

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Old 01-07-12
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Default Re: ABN/ACN Numbers Changing

Thanks for the nice words! I'm glad I can contribute!

Quote:
Does that even though the only thing that has changed in our existing client agreements is our ABN/ACN Number and our Company Name is still the same, these could potentially cause existing contracts to be invalid.
The thing to clarify/understand is that the ACN hasn't changed. An old ACN/Company has ceased to exist through deregistration of the company and a new one formed in its place. It's not a matter of the actual entity having asked to change their ACN for a new one. So, yes - the de-registration of first company and re-registration of a new company with the same name would mean that new company has never been a part of any contracts etc even if it does have the same name.

For all consumers know it is an entirely brand new/separate company; published records would simply tell them that there used to be a company registered by X name and it ceased and then another one started.. they'd have no real way of knowing (short of ordering and studying full extracts) that they are really the same entity.

Whilst some people might not even notice, nor care - at the end of the day the second company may have trouble enforcing any contracts that were in place with the first company. Mind you, it is possible for a company to sell assets - including works in progress etc to another entity, so if this was the case there may be something in that 'sale' that discusses any contracts etc.

Hopefully others will be along to clarify this further - but I wouldn't think de-registration of a company / registering a new one is simply for 'accounting reasons' - there would likely be more to it than that. If you would like to send me a PM with the actual company name I would be happy to see if I can find out anything further for you.

PS - Enjoy your afternoon on the couch... think I am off to do the same

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