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Ask Leon Your Own Question
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 44181
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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I am the sole share holder of a Company but not the director

Customer Question

I am the sole share holder of a Company but not the director and I wish to lend money to the Company by buying the weekly Invoices and getting the Clients to sign a consent to pay into a different account, of course I have an ABN etc and the profit will be reported in my tax return.
Am I exempt from holding a AFS Licence
Stuart Dunning
Submitted: 2 years ago.
Category: Australia Law
Expert:  Leon replied 2 years ago.
Good Morning, My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.You have to have a loan agreement with the company and the Director has to sign on the companies behalf. You should also request that the Director guarantee the loan that you are giving.You are not organising a loan for the company you are the lender and as such there is no AFS licences required. if you were organising finance from another institution and getting a commission then you would be acting as a broker and would need an AFS licence. You should have a solicitor prepare the documents and also make sure that you have a right to register your interest over the assets of the company. I hope this all makes sense and is of assistance. If there is nothing further thank you for using my services. If I have missed anything, or you have any further questions please let me know If there is anything else in the future please do not hesitate to ask. Please do not forget to leave positive feedback. RegardsLeon