Join Australia's most dynamic and respected property investment community

Legal Tip: The Importance of Keeping the Company Address Up to date.

Discussion in 'Legal Issues' started by Terry_w, 20th Aug, 2016.

Tags:
  1. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    9,043
    Location:
    Sydney
    Legal Tip: The Importance of Keeping the Company Address Up to date.

    It is very important that the registered business address for a company be kept up to date on the asic register.

    One reason is that the Corporations Act requires it. Failure to notify ASIC within 14 days of changing address will result in fines.

    A more important reason is that the official address of the company for legal purposes is the registered address. Any legal papers must be served on the company by delivering them to the registered address.

    One example of the serious consequences that can arise is that a company could be inadvertently wound up.

    This happened to one of my clients. The company had owed unpaid commission to an employee. The employee served a statutory demand on the companu at their registered address. But the company had moved offices and didn't update the ASIC register.

    Soon a locksmith tunred up at rhe offices and cha fed the locks on the doors. The company had been wound up without their knowledge.

    It was too late to simply pay the disgruntled employee. The company had to go to the supreme court to try to prove they were solvent and to get the company reinstated. In the meatime they could not operate their business.

    Moral of the story is to keep your records up to date
     
    Perthguy and Daniel Taborsky like this.