Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020 (6 of 2020)

Schedule 2   Improving the accountability of resigning directors

Corporations Act 2001

3   After section 203C

Insert:

203CA Resolution to remove directors - resolution is void if proprietary company has no other directors

(1) A resolution by members of a proprietary company to remove a director of the company is void if, at the end of the day that the resolution is to take effect, the company does not have at least one director.

Note: For the application of this section, see Part 10.37.

(2) However, subsection (1) does not affect the validity of a resolution by members of a proprietary company to remove a director of the company if the resolution is to take effect on or after the day that the winding up of the company is taken, because of Division 1A of Part 5.6, to have begun.