Can a foreign person be a Successor Director? (Foreigner)

Can a foreign person be a Successor Director? (Foreigner)

By way of general commentary; 

The possibility of a foreign individual serving as a successor director in an Australian company is feasible under Australian law.

The Corporations Act 2001 (Cth), which regulates Australian companies, does not stipulate specific nationality or residency requirements for company directors. This means that a foreign person, even if currently residing overseas, may be appointed as a director, including a successor director, of an Australian company.

However, there are a few critical considerations that you should keep in mind:

Registered Office in Australia: Each company must have a registered office in Australia. This location is where communications and notices to the company are sent.

A Local Director: While the law allows foreign directors, there is a requirement for at least one director who ordinarily resides in Australia for companies registered. 

Prior to being appointed as a director, the person must consent to taking on the role and responsibilities of a director in written form. 

Duty of Care: It's important to note that foreign directors are subject to the same legal duties as Australian directors. This includes, among other things, a duty of care and diligence, a duty to act in good faith in the best interests of the company, and a duty not to improperly use their position or information obtained through their position.

While a foreign individual can serve as a successor director, it is important to carefully consider these points, and any other potential logistical and practical challenges, when appointing a foreign director.