In a digital age where emails are the accepted norm, receiving something in the post as a means of communication may seem outdated but not having your registered office up to date or ignoring that physical letter can have serious consequences. Monique Burr discusses why it’s important for businesses to ensure their company’s registered office is kept up to date in ASIC’s records.
Under section 142 of the Corporations Act 2001 (Cth), a company must have a registered office at which it can receive communications and notices. It is common practice for a company’s registered office to be that of their accountant or solicitor or at an address other than the place of business of the company.
Whilst it may not seem important in the scheme of things when it comes to running a company, the address of the company’s registered office does serve an important purpose.
Section 109X of the Corporations Act 2001 (Cth), provides that for the purpose of any law, a document may be served on a company by leaving it at or posting it to the company’s registered office. These documents can include letters of demand, statutory demands or filed legal proceedings. The use of an accountant or solicitors firm or other addresses as your registered office can often seem convenient but when it comes to receiving these types of documents, not responding to them in a timely manner can have severe consequences.
Statutory demands and legal proceedings impose strict time frames for a response and failure to do so can result in undesirable outcomes. For example, if a company fails to respond to a statutory demand within 21 days the company is deemed to be insolvent and the creditor can seek to have the company wound up. Equally, if a company is served with a legal proceedings and fails to file a Defence within within the timeframe allowed under the relevant court rules (usually 28 days), the Plaintiff may obtain default judgment against the company and take enforcement action. Setting aside default judgment or opposing a winding up application are costly exercises.
If you haven’t reviewed or updated your company details for some while it may be worth:
In short a company’s registered office shouldn’t be a “set and forget” and should be regularly reviewed. Companies should take active steps to ensure their registered office is up to date in ASIC’s records.
Hillhouse Legal Partners litigation team can assist and advise on a range of legal matters and disputes. If you would like to discuss your circumstances with a team member please contact us by email or on 07 3220 1144.
The information in this blog is intended only to provide a general overview and has not been prepared with a view to any particular situation or set of circumstances. It is not intended to be comprehensive nor does it constitute legal advice. While we attempt to ensure the information is current and accurate we do not guarantee its currency and accuracy. You should seek legal or other professional advice before acting or relying on any of the information in this blog as it may not be appropriate for your individual circumstances.