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 on 22 October 2026

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 1967 (opens in new tab).

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.
Disqualification for persistent default in relation to delivery of documents to Registrar (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: Court order (sections 149 and 154(2)) Fraud or dishonesty crimes with possible jail time of three years or more (section 154(1))	Without imprisonment: Upon conviction and continue for a period of 5 years (or shorter, if the court orders). With imprisonment: Upon conviction and continue for a period of 5 years after the individual is release from prison.

Note: If a director faces multiple disqualifications, the disqualification periods will run concurrently. The director may resume serving as a director once all disqualifications have ceased.

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
Notify the company of your disqualification as soon as practicable but not later than 14 days after the disqualification	You need to inform your company so that it can: Remove you as director Find a replacement, if needed Notify ACRA within 14 days Penalty for failing to notify the company: Fine not exceeding $1,000.
Stop acting as a director	During the disqualification period, unless you have obtained permission, 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.
(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: Court Official Assignee Registrar (under Section 155A of the Companies Act) Once permission is granted, you must submit proof of approval via the General lodgement eService (opens in new tab).
After the end of your disqualification period	After the end of your disqualification period, you can: Take on new director appointments Directly or indirectly manage a local or foreign company. Act as a director of any company.

Next steps for companies

Companies

What companies must do	Details
Notify ACRA within 14 days upon receiving notice of the director’s disqualification	Failure to notify: Fine not exceeding $5,000 and also to a default penalty for the company and every officer of the company
Update the company registers	Penalty: Fine not exceeding $25,000
Find a replacement, if needed	If the disqualified director is the only local director, the shareholders must appoint another local director. If the shareholders cannot find a replacement or no longer want to run the business, the company can apply for striking off the company (opens in new tab).

What companies must do

Details

Notify ACRA within 14 days upon receiving notice of the director’s disqualification

Failure to notify: Fine not exceeding $5,000 and also to a default penalty for the company and every officer of the company

Update the company registers

Penalty: Fine not exceeding $25,000

Find a replacement, if needed

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

If the shareholders cannot find a replacement or no longer want to run the business, the company can apply for striking off the company (opens in new tab).

Frequently asked questions (FAQs)

Does ACRA notify an individual if they are disqualified after being convicted of three or more filing offences or had three or more companies struck off?

There is no statutory requirement for ACRA to notify individuals or their companies of a disqualification. As disqualification arises by operation of law, individuals should take steps to ascertain their status and ensure compliance with the relevant legal requirements.

Where can I see if a director has been disqualified?

An individual’s disqualification can be seen in the company’s Business Profile (opens in new tab) of the company and the individual’s People Profile (opens in new tab). Both are available to the public for a fee.