The tale of a company’s registered office: Small Details, Big Consequences

Like human beings, every company should have a home where it receives support and care. For a company, that home is its registered office.

Do you think that a registered address is simply an address that you “set and forget” when you or your accountant first created your company? Think again.

Important communications and legal documents are sent to the company’s registered address. Many people nominate their company’s registered office as their accountant’s or lawyer’s address, or their home address. Whatever you choose, ensure that your company’s registered address is one where your company’s mail will get due attention and care.

One of our clients learnt this lesson the hard way.

Our client’s company ran a small but highly successful business, with a portfolio of real estate.

The company’s registered address was our client’s accountant’s office. Without notifying our client, the now former accountants informed ASIC that they ceased acting as the company’s registered address. The company’s registered address was thus changed without our client’s knowledge.

The company had owed a small amount of strata fees. Unfortunately for our client, a Statutory Demand was issued to the company’s registered address, which was no longer attended.

The director had no idea that a Statutory Demand was made and because the company did not comply with the strict deadline of a Statutory Demand, without our client’s knowledge, the company was placed into liquidation!

One of the Big Four advisory firms was appointed as the liquidator.

After the initial shock, our client came to us for help. What followed was months of expensive litigation with a well-resourced liquidator.

The books and records of the small one-person company were investigated by a specialist team of accountants and liquidators. The liquidator made continual demands for sophisticated documentation, which were disproportionate to the operations of a small company.

To make matters worse, our client’s hard-earned real estate assets were held by the company and feared lost.

Our client spent over $100,000.00 attending to the liquidator’s demands and attempting to regain control of her company through the Court process.

This serves as a reminder to all that your company’s registered address must be an address where you trust that your company will receive proper care and attention.

Do you have a registered office address that you trust?

At Gavin Parsons and Associates, we act as a registered office for companies. We receive your important documents and swiftly inform you about the action that you must take without delay.

We will ensure that all documents received are promptly handled as we know how important they are, the consequences of non-compliance and the applicable deadlines to prevent you from serious adverse consequences. You can therefore have the comfort of knowing that if we receive a document that requires your urgent attention or involves legal obligations on your part, you will be notified immediately and have access to accurate legal advice and experienced support.

We charge a small annual fee of $300 + GST to act as your registered office, plus $50 per document received. If your company needs a registered office that gives you care and support, contact us now.

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Date posted: 2020-02-20