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Accounting and Corporate Regulatory Authority

When a director can or must leave office

Find out when and how company directors can resign, and the circumstances that lead to disqualification from being a director.

Last updated 29 January 2026

On this page

Resignation requirements
Reasons for disqualification
What to do after disqualification
Frequently asked questions (FAQs)

Resignation requirements

A director can resign if both of these conditions are met:

  • The resignation process complies with the company constitution.

  • The company will still have at least one director who is ordinarily resident.

Note: The company must withdraw the position holder via Bizfile within 14 days of the resignation. If the company fails to do so, the director can notify ACRA directly.

Reasons for disqualification

Directors can be automatically disqualified for a few reasons under the Companies Act 2024.

Director disqualification

Reason

Disqualification period

Bankruptcy (section 148)

Until the director is discharged from bankruptcy.

National security or interest (section 149A)

Three years from the date the winding-up order is issued.

Repeated filing failures (section 155)

Five years from the date of the last conviction.

Three or more companies struck off by ACRA within five years (section 155A)

  • First-time offenders: Three years after the third company is struck off.

  • Repeat offenders: Five years after the third company is struck off.

Any of these reasons:

  • Without imprisonment: Five years from the date of conviction.

  • With imprisonment: Disqualification starts when convicted. This continues for another five years after release (or shorter, if the court orders).

Note: If a director faces multiple disqualifications, the periods run at the same time. The director can return when the longest period ceases.

What to do after disqualification

Disqualified directors cannot act as directors or manage any companies without permission.

Next steps for disqualified directors

Directors

What you need to do

What you need to know

Provide written notice of disqualification to the company

ACRA does not notify companies when directors are disqualified. You need to inform your company so that it can:

Penalty for failing to notify ACRA: Up to $5,000 for the company and each officer.

Stop acting as a director

During the disqualification period, you cannot:

  • Take on new director appointments

  • Directly or indirectly manage a local or foreign company

  • Act as a director of the same company (unless you get permission)

Penalty: Fine up to $10,000, imprisonment up to two years, or both.

Monitor your disqualification period

ACRA will send you a letter on the start and end date of the disqualification period.

You can also check the dates in ACRA's register. A disqualified status will appear on your People's Profile until the period ceases.

Bankruptcy cases: The Official Assignee will inform you when you are discharged from bankruptcy.

(Optional) Get permission to continue

You cannot appeal to overturn the disqualification. However, you can act as a director of an existing company if you get permission from:

  • High Court (most cases)

  • Official Assignee or private trustee in bankruptcy (bankruptcy cases)

  • ACRA or the Court (multiple company strikes)

Once permission is granted, you must submit proof of approval via the General lodgement eService.

(Optional) Return after disqualification

After the disqualification period ceases, you can:

  • Register a new company

  • Be re-appointed as a director in the same company. The company must notify ACRA within 14 days of the appointment.

Next steps for companies

Companies

What companies must do

Details

Notify ACRA within 14 days

Penalty: Fine up to $5,000, plus default penalties for each officer in default

Update the withdrawal of the director within 14 days of the change

Penalty: Fine up to $5,000, plus default penalties for each officer in default

Update the company registers

Penalty: Fine up to $25,000

Find a replacement, if needed

If the disqualified director is the only local director, shareholders must appoint another local director.

If shareholders cannot find a replacement or no longer want to run the business, they can strike off the company.

Frequently asked questions (FAQs)

Why does ACRA only inform an individual after disqualification if they have been convicted of three or more filing offences or had three or more companies struck off?

ACRA is not legally required to inform individuals or their companies about the disqualification. Individuals are expected to know if they are disqualified under the law.

Where can I see if a director has been disqualified?

A disqualified director’s status is listed on ACRA’s register.

It appears in the company's Business Profile of the company and the individual's People Profile. Both are available to the public for a small fee.