Question 1

How does a successive director solution differentiate a company constitution?

Accepted Answer

This solution allows for a seamless transition between directors when the time arises, as well as allows for clear succession for company leadership.

Question 2

What is the successor director solution?

Accepted Answer

A successor director solution is a lineal-type solution that allows current directors to name and appoint future directors, should they get divorced, become incapacitated, die, or need to resign for any other matter. It also allows for seamless transitions if unexpected events were to occur.

Question 3

Who can be a successive director?

Accepted Answer

Any person over the age of 18 and of sounds mind may be nominated to become a successive director, if a person under the age of 18 has been named (e.g. parent has named their child who is currently 15 as a successive director for the future), a secondary solution will be required once the child turns 18.

Question 4

Share Classes

Accepted Answer

A company can issue different types (‘classes’) of shares. The rights and restrictions attached to each class of share can distinguish it from the others. Australian companies usually choose to issue ordinary shares but can issue whichever it chooses.

More information on share classes can be found here: https://asic.gov.au/for-business/running-a-company/shares/

Question 5

How long does this document take to assemble?

Accepted Answer

Depending on the complexity of the data, this document should take approximately 15-30 secs to assemble. If you experience timing outside of this please contact Support via the Surge app, alternatively please read this article for troubleshooting tips https://info.lightyeardocs.com.au/supportcentre/troubleshooting-longer-assembly-times-timeouts .

Question 6

Can the standard company be used for business purposes?

Accepted Answer

The LYD standard company has been built specifically for investment and business purposes and can undertake borrowing as well.

Question 7

Successor Director solution with company upgrade

Accepted Answer

This document allows for not only the nomination of a successive director line, but also the option to upgrade a client’s current company constitution to one of 4 others, including the LYD Standard Company Constitution.

Question 8

Share Class Changes

Accepted Answer

If a user would like to upgrade their current company constitution to the LYD Standard Company Constitution, they must be aware that the share classes may be changed to reflect those in the LYD document. If this is an issue, or you require assistance with this further, please contact support@lyd.com.au.

Question 9

Is this a legal document?

Accepted Answer

All master documents have been signed off by LY Legal. Tony Anamourlis of LY Legal advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LYD platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LYD platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”

However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed legal document provided by LY Legal.

The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:

“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”

Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances. The Court held that this process was legal work.

Question 10

Is the document easy to read?

Accepted Answer

All LYD products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lyd.com.au.

Question 11

What lawyers sign off on LYD documents?

Accepted Answer

All LYD documents are prepared and signed off by LY Legal.

Question 12

Are the LYD documents reviewed regularly?

Accepted Answer

All LYD documents form part of the LYD internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is include on this website.

Question 13

Can I get a sample of this document?

Accepted Answer

Yes, please email support@lyd.com.au to request a sample document for you to review.

The Successor Director Solution – Single Company plus upgrade