Changes to director resignations

The Australian Government has introduced new laws to help combat illegal phoenix activity.

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Director resignation

The information below comes from the Australian Securities and Investments Commission.

Since 18 February 2021, a company director cannot backdate their resignation more than 28 days or resign if it means the company would be left without a director. Backdating resignations was a common tactic used by directors to engage in illegal phoenix activity.

Illegal phoenix activity involves creating a new company to continue the business of an existing company that has been deliberately liquidated to avoid paying outstanding debts, including taxes, creditors and employee entitlements.

The resigning director or the company will now need to notify the Australian Securities and Investments Commission (ASIC) of a director resignation within 28 days. If ASIC is not notified within 28 days, the effective resignation date will be the document lodgement date.

For example, if a director resigns on 1 March 2021 and does not notify ASIC of their resignation until 1 August 2021, ASIC will record their resignation as 1 August 2021 on the corporate register.

The company or director must apply to ASIC or the court to fix an earlier date. You can find out the timeframes and process for this on ASIC’s website.

The reforms also prohibit companies from removing the last remaining director on ASIC records, leaving a company with no directors. ASIC will reject submissions of Form 484 Change to company details or Form 370  Notification by officeholder of resignation or retirement to cease the last appointed director without replacing that appointment.

These reforms assist the joint effort of ASIC and other government agencies in detecting, deterring and disrupting directors and advisers who engage in illegal phoenix activity.

More information is available on ASIC’s website.


Last reviewed: 31 May 2021 Last published: 31 May 2021
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Reminder to install interconnected photoelectric smoke alarms

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Photoelectric smoke arlams

Get interconnected. From 1 January 2022, it’s the law

From 1 January 2022, landlords must install interconnected smoke alarms in residential rental properties. Similar rules apply to owner occupiers. All other dwellings must transition to full compliance by 2027.

Interconnected photoelectric smoke alarms must be installed in every bedroom, in hallways and on every level. When one goes off, they all go off, giving everyone extra time to escape.

Existing smoke alarms manufactured more than 10 years ago, and any smoke alarms that do not operate when tested must be replaced with photoelectric smoke alarms that comply with Australian Standard 3786–2014.

Existing hardwired smoke alarms that need replacement must be replaced with a hardwired photoelectric smoke alarm.

If you are installing or replacing hardwired smoke alarms, you will need to contact an electrician.

If you are a tenant, your landlord must have installed interconnected, photoelectric smoke alarms from the start of the first new lease or any lease renewal from 1 January 2022.

Smoke alarms must be maintained through regular cleaning and testing, which can be carried out by pushing the ‘test’ button. Cleaning should be done in line with manufacturer instructions, usually by vacuuming.

Whether you’re a landlord, owner occupier or tenant, visit qld.gov.au/smokealarms to find out more about your obligations.


Last reviewed: 31 May 2021 Last published: 31 May 2021
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Venting requirements for domestic kitchen exhaust hoods

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Range hood

A common question builders ask is: What are the venting requirements for domestic kitchen range hoods in Class 1 buildings? In this article, we will inform readers of the purpose and installation requirements of such range hoods and some important issues for consideration.

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A typical range hood found in a residential dwelling.

What is the purpose of a range hood?

Range Hoods are primarily installed in a residential dwelling to improve the air quality in a kitchen by capturing and/or discharging things such as water vapour, odours, smoke, grease and other potential pollutants emanating from the use of a cooktop. 

Without a functioning range hood, the discharges mentioned above can spread widely throughout the kitchen and adjoining rooms, resulting in a thin layer of difficult-to-remove grime deposited onto a range of surfaces.

How does a range hood work?

Range hoods generally work on the principle of an electric exhaust fan being located above the cooktop that extracts fumes and pollutants from the cooking area. This is via a filter membrane that catches vapours containing grease and oils. Once filtered, the air is either recirculated back into the kitchen area or discharged to an external air-space. 

Building Code requirements

The Building Code of Australia (BCA) contains no specific mandatory requirement that range hoods need to be installed in a Class 1 building.

What the BCA does require as an acceptable construction practice, is that natural ventilation is provided to any room being occupied by a person. Such natural ventilation can be provided via openable windows, doors or other devices of prescribed sizes relative to the room's floor area.

In circumstances where a window, door or another device cannot be located in a kitchen, the BCA also allows the borrowing of natural ventilation from adjoining rooms.

Installation requirements

Range hoods need to be installed in strict accordance with the product manufacturer's instructions. A determination should be made when entering into a building contract (via the specifications) regarding whether a recirculating or exhaust type range hood installation is required.

Clearly, in cases where a client requires the range hood to be exhausting to outside air, additional costs will be incurred in material, installation costs for ducting, outlets, etc. Some range hoods may even require a more powerful motor to exhaust to a remote location. 

Where to exhaust

Building contractors need to liaise with their clients and relevant suppliers/installers of the kitchen cabinetry and equipment to ensure that the range hood's location will allow for external exhaust if required by the client.

The most practical location to exhaust to outside air would be as close as possible to the range hood itself so that adequate venting can be achieved from the units fan motor. However, that may not always be practical so careful consideration of the exhaust outlet location is essential. 

The practice of venting a range hood exhaust into a ceiling space or wall cavity is not sound. Over time, pollutants such as grease and oil can build up creating a fire hazard along with associated odours and potential damage to insulation and the like.

Maintenance 

The cleaning or replacement of filters in range hoods is arguably one of the most overlooked pieces of routine maintenance required around a domestic dwelling.

If filters are not cleaned or replaced regularly, the range hood's efficiency will be degraded, and filters that are choked with flammable greases or oils become a potential high fire source risk. 

Further considerations

Whilst we have only discussed the issues surrounding range hoods in Class 1 buildings, building contractors are reminded that in other building classes, special requirements apply to range hood installations and the Australian Standard AS 1668.2 - Mechanical ventilation in buildings is referenced by the BCA to ensure a compliant range hood installation standard.


Last reviewed: 19 Feb 2021 Last published: 19 Feb 2021
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