Home – New Forums Starting your journey Bit of a tricky setup…..

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  • #990534
    Hobbes
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    • Total posts: 6
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    Hi,

    Im an Aussie but Im living in Canada right now (and will be overseas for the next few years).

    Im looking to create and run my own small company. Since I plan to be moving around (and will probably end up back home in Oz eventually), I’ve decided to register and headquarter it in Australia.

    My plan at the moment is to Register in Oz as a Proprietary Company Limited by shares with myself as a Director and with a Family member as a Director in Australia to meet the residence requirement. This was suggested to me by a fellow aussie who has done the same thing (well technically he said they were “a non-active director”)

    I wanted to know about the legal liability associated with this?

    It would be one of my parents and I would be using their address.

    What (if any) are the potential risks or liabilities for them?

    Of course I would be running a totally legitimate business and meeting all my legal and tax obligations. Not trying to do anything dodgy, I just would never want anything to effect my parents assets or finances.

    Anyone with any advice, insight and recommendations would be awesome.

    Recommendations for a decently priced solicitor or accountant who can help me with this stuff would be more than welcome too.

    Cheers guys

    Will

    #1177390
    NickKaro
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    • Total posts: 226
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    Hi Will

    Given the scenario presented, I expect there to be minimal risks to the other Director. Those that do come to mind are:

    – insolvent trading: directors can be personally liable in certain circumstances where a company takes on further debts whilst insolvent.

    – tax/financial records: directors can be liable where a company does not meet its tax or record keeping obligations.

    – other general obligations: directors can also be liable for criminal actions undertaken by their companies – shouldn’t be applicable if things are done by the book.

    Directors/company officeholders insurance is a great way to get comfort, particularly as it generally provides for coverage for legal costs (i.e. you may not have done anything wrong, but as you can expect, defending an action can cost considerable amount). You do need to keep in mind that, as with all insurance policies, it does not cover everything.

    I hope this general advice is of assistance.

    Regarding your request for a recommendation – I am both a reasonably priced lawyer and accountant that can assist with such matters, my contact details are per my website below.

    Regards
    Nick

    #1177391
    Hobbes
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    Hi Nick,

    Thanks for the response mate, much appreciated.

    I’ll look into contacting you about this through your website.

    Cheers!

    #1177392
    NickKaro
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    • Total posts: 226
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    No worries mate – look forward to assisting further!

    Regards
    Nick

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