Provides for a Successor Director where a Director no longer wants to be a director due to divorce, is incapacitated, dies or is otherwise unable to carry out their duties as a director.
The continuity of a business or investment will depend entirely on what happens to a sole director and sole shareholder of a company. Equally a person or a family’s investment in a trust or company may be jeopardised where there is no representation on the Board of the corporate trustee or company. A Successor Director may be inserted as a director in the event of a director due to divorce, is incapacitated, dies or is otherwise unable to carry out their duties as a director. The LightYear Docs Successor Director Solution provides for a constitution update as well as binding resolutions to appoint a Successor Director in the event of one of these circumstances occurring.
- provides for seamless transfer of directorship in the event a current Director dies or cannot carry out their duties
- applies to not only single director companies but to multi-director companies
- ensures that there is a continuation of business
- provides asset protection for a family’s wealth
- simple and easy to implement and execute
- this solution enables multi-companies including SMSF trustee companies, discretionary trustee companies, bare trustee companies, unit trust companies, bucket companies and standard business companies
- the ASIC guidance on single director problems is included as part of the strategy pack.
Frequently Asked Legal Questions
Is this document a legal document?
All master documents have been signed off by Abbott & Mourly lawyers. Tony Anamourlis of Abbott & Mourly advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LightYear Docs platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LightYear Docs platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”
However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed legal document provided by Abbott & Mourly.
The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria  VLR 394, 397 where the Court held:
“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”
Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances. The Court held that this process was legal work.
Is the document easy to read?
All LightYear Docs products are written in plain English and assessed for readability. If at any time you come across any errors, please contact firstname.lastname@example.org.
Can I get a sample of this document?
Yes, please email email@example.com to request a sample document for you to review.
Why use the LightYear Docs Successor Director Solution?
The LightYear Docs Successor Director ensures continuity of business.
ASIC Guidelines on Successor Directors
Where the sole director is also the sole shareholder, however, the risk of uncertainty is much greater. Section 201F of the Corporations Act 2001 does provide that, in the event of the death of a single member/director of a proprietary company, the executor or other personal representative appointed to administer the deceased’s estate may appoint a new director to the company. The director has all the powers, rights and duties of the deceased director and can keep the company running until shares are transferred to beneficiaries who may then appoint new directors if they wish.
What lawyers sign off on the LightYear Docs?
All LightYear documents are prepared and signed off by Abbott & Mourly from Melbourne, Sydney and Brisbane.
Is there any training on the LightYear Docs Successor Director solution?
We have specialist training in the Strategy Centre on www.lightyeardocs.com.
Do you have details on the LightYear Docs that I can give my clients?
We have an email newsletter on Successor Directors you may want to give to your client.
What is the suggested advisory services fee for my clients when I advise on this solution?
It will depend on how many companies are effected and whether a change in company constitution is required as well as a set of minutes in relation to the Successor Director. The expected services fee is $750 - $1,500 per company.
Can this document be digitally signed?
NOT RECOMMENDED. This document, or pack of documents, includes the establishment of a deed and/or a signature that requires witnessing. Abbott & Mourly have advised that a digital signature on any part of the assembled document is NOT legally binding. This is in accordance with all current legislation. LightYear Docs will regularly review this position as part of its internal review process. You can read more about digital signatures on the strategy centre by searching "digital signatures".
Is the LightYear Docs reviewed regularly?
All LightYear Docs documents form part of the LightYear Docs internal document review cycle. All documents are scheduled to be reviewed at least annually or when required to do so, due to changes in legislation. The LightYear Docs review cycle ensures all of our documents remain current and accurate.
What happens after I purchase this document?
After you purchase this document, you will experience first-hand the power of our assembly engine, HotDocs. An interview session will appear in what is called the HotDocs iFrame. Through the use of the iFrame technology, we are able to create document templates in minutes, versus months of coding through other methods. The iFrame also allows for rapid integrations and documentation to be assembled instantly in "lines" or packs of documents.
Can I edit my document after it has been completed?
Your document will be available to edit from the LightYear Vault for 90 DAYS after you have completed the interview process, at which point it will be locked for future edits. Your completed documents will be listed under "My Vault" from the drop-down menu in the top right-hand corner after you login. This is also where you re-launch an "interview" to make edits within the first 90 DAYS.
Can I save a document to complete later?
Yes, provided you select save, you can exit the interview process at any time. All documents that have been purchased and not yet assembled will be saved under "My In Progress Docs" and are accessible from the drop-down menu in the top right-hand corner after you login. This is also where you re-launch an "interview" to continue the interview process and assemble your document.