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Removing a director

19/3/2019

 
When forming a company, certain documents are prepared which will be pivotal to its existence. Once registered, the replaceable rules contained in the Corporations Act 2001 (Cth) may be adopted or a constitution specially prepared to govern the operations of the company.
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A shareholders agreement may also be used which creates a private contract between the shareholders of the company and sets out their respective rights and responsibilities.
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The importance of consistency between these documents, and understanding the interplay of the Corporations Act, when managing the company is critical.
The issues arising from conflicting documents and unfamiliarity with the processes required to appoint and remove company directors, was evident in Shearwood (Trustee) In the matter of Allied Resource Partners Pty Ltd v Allied Resource Partners Pty Ltd [2017] FCA 1451. 

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