Issue 1 - February 2004Warren McKeon Dickson launches Electronic Newsletter Welcome to Issue #1 Welcome to the first edition of our electronic newsletter. The purpose of the newsletter is to advise you of recent changes in the law and to provide legal information which may be useful in your business or other activities. We intend publishing the newsletter monthly or more frequently depending on the importance of new legal developments. We will keep the newsletter short and easy to read. We invite you to contact us if you require more information about a particular topic and we welcome your comments on the form and content of the newsletter. Please contact us at any time if you wish to be taken off our distribution list. New legislation will significantly change the way the power of attorneys are prepared and signed New Powers Of Attorney New legislation commences on 16 February 2004 which will significantly change the way new general and enduring powers of attorney are prepared and signed. The Powers of Attorney Act 2003 introduces a new prescribed form for the appointment of attorneys. The form must now expressly state the authority to be given to an attorney to confer gifts or benefits on themselves or others. In addition, the new legislation provides that an enduring power of attorney (that is, a power of attorney that continues to have effect after the principal has lost capacity) will not take effect until the attorney has acknowledged acceptance of the appointment. The introduction of the new legislation makes it important for people with existing powers of attorney or those considering a new appointment of an attorney to carefully consider the authority they intend their attorneys to have in circumstances where they become incapacitated. We will be happy to help with any of your power of attorney, will or estate planning needs. If you have any queries, please telephone Jayne Humphreys or email jayne@wmdlaw.com.au Directors can be personally liable for a company's debts Responsibilites as a Company Director Since the recent collapses of large companies such as HIH and One-Tel, the focus of discussion in the corporate arena has been on "corporate governance". Corporate governance is largely concerned with the structure and procedure of the company's board and the effectiveness of those structures and procedures in directing and controlling the company's affairs. A particular concern for directors is the potential for personal liability for the company's debts in circumstances where a company trades when it is (or may become) insolvent. In such circumstances, a court may order a director to pay a penalty of up to $200,000 or to pay compensation for damages suffered by reason of the directors' breach of the Corporations Act . If you are a director of a company, you should consider the following issues:
· Are board meetings convened regularly? Do you regularly attend board meetings? · Are you aware of the company's financial position and the procedures adopted to manage the company's affairs? · Does the board have regular access to all of the company's financial records and does the board actually take steps to ensure those records are accurate? · Have you ascertained whether you have any interests that conflict with interests of the company or its shareholders? If so, have you properly declared those interests? · Does the board have procedures in place to manage the risks associated with the company's operations?
For any enquiries in relation to the responsibilities of directors, please telephone Craig Pryor or email craig@wmdlaw.com.au Expiry of Appointments Notice To All JP'S The Justices of the Peace Act 2002 now provides that all current appointments of Justices of the Peace will expire on 8 December 2006 unless an application for re-appointment is lodged with the Attorney General's Department. All new appointments or re-appointments will be for a 5 year term. Previously, the position was that Justices of the Peace were appointed for life. For more information visit www.lpi.nsw.gov.au New Certificates Of Title The Department of Lands is now issuing a new form of Certificate of Title. The new form of Certificate incorporates several new security features which have been implemented to reduce the incidence of forgery. One of the new security features is an additional number known as the Certificate Authentication Code, which will only appear on the original Certificate of Title. This Code can be verified online with the Department, but it will not appear on any title searches. The new form of Certificate also has a unique watermark which only appears when the Certificate is photocopied. It is possible for owners of unencumbered property to request that a new form Certificate of Title be issued in relation to their property so that owners can obtain the protection of the new security benefits. If you own an unencumbered property and would like to obtain a new form Certificate of Title, or if you have any enquiries in relation to the new Certificates of Title, please telephone Rebecca Flynn or email rebecca@wmdlaw.com.au
This newsletter is intended to provide general information and is current as at the date of publication only. This newsletter does not, and is not intended to, provide legal advice to any person. Recipients of this newsletter should not alter their position (or refrain from altering their position) on the basis of any information contained in this newsletter and should always obtain appropriate legal advice from a qualified lawyer. Receipt of this newsletter is not intended to and does not create any solicitor-client relationship.
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