A director of a company can with the approval of other directors appoint an individual to act as an alternate director and exercise some or all of the powers of the director for a period of time as specified.

The alternate director may be granted the same powers and carry out the same duties as the appointing director depending on the terms of their appointment. The appointing director may also request the company to give the alternate director a notice of the directors’ meetings. The appointment or termination of the alternate director must be in writing and they can be terminated at any time by the appointing director. The company must be given a copy of their appointment or termination.

For the appointment of an alternate director ASIC must be notified within 28 days of the appointment by lodging A Change to Company details Form 484.

The details required when appointing an alternate director are:

·         full name and any former names

·         date and place of birth

·         residential address

·         date of appointment

·         the name of the director for whom the individual is an alternate;

·         expiry date (if applicable). If the appointment is open ended, provide the date of appointment only and 

·         terms of appointment. These must include details such as the timeframe of the appointment, capacity to sign instruments and attend meetings.

Where an expiry date of the appointment of an alternate director is already decided Ceasing the appointment of an alternate director does not need to be notified to ASIC. However if the appointment was made without deciding an expiry date the Change to Company details needs to be lodged to notify ASIC of the date when the appointment of the alternate director ceased.

If the alternate director is also an existing appointed director the cessation of the alternate director doesn’t automatically cease the appointed director. A Change to company details will have to be lodged to notify ASIC of cessation of both positions.

Cessation of the director for whom the alternate director was appointed does not automatically cease the alternate director. A Change to company details needs to be lodged for notifying ASIC of the cessation of both positions