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What happens if you are a company director

If you are subject to bankruptcy, the rules of the Corporations Act forbid you to be a company director.

Once you have a bankruptcy number, you need to lodge a completed Form 296 with ASIC, with the number and date of the bankruptcy. There is no fee to be paid.

If the company is left without a director once you have lodged Form 296, ASIC will de-register the company. However, you may find one of your creditors will initiate proceedings to wind up the company before ASIC de-registers it.

Either way, once you are no longer a director, you can no longer act on the company’s behalf. All issues relating to the company should be left to a liquidator – if appointed – or to ASIC.

We recommend you send a letter to all your creditors telling them what you are doing, so they can decide what action they wish to take.

For more information call Nicholls & Co on 1300 060 122 or email helpdesk@nichollsco.com.au.

Alan Nicholls - Registered Trustee

Alan Nicholls’ no obligation help desk

Nicholls & Co provide a free, no obligation ‘help desk’ for people considering bankruptcy – we discuss and explain bankruptcy and answer questions for anyone who is considering bankruptcy. The Nicholls & Co help desk can be accessed by phone  
1300 060 122  or helpdesk@nichollsco.com.au . Alan Nicholls, Registered Trustee in Bankruptcy is also available to answer your questions to enable you to decide if bankruptcy is right for you.