Roles and Responsibilities of a Company Director
Company Directors have an obligation to comply with The Corporations Act and ensure the company is operates to its highest standard. A Director is responsible for the company’s business and compliance performance and must attend to all company needs.
Section 181 of the Corporations Act states ‘A director or other officeholder must exercise their powers and discharge their duties in good faith in the best interests of the corporation and for proper purpose’.
Directors are responsible for controlling their company’s business. This includes the responsibilities of the following:
- Keeping up to date with the company’s performance and knowing how any proposed actions will affect the company;
- Keeping accurate financial records and knowing the company’s financial state;
- Getting appropriate legal and accounting advice when needed;
- Taking an active role in directors and board meetings;
- Talking to managers and staff on how the business is performing.
Directors must be honest and careful with dealing with the company and meeting their legal obligations. There are numerous legal responsibilities that directors must comply by within the Corporations Act and other laws. Some of these duties include:
- To act in good faith in the best interests of the company;
- To exercise care and diligence;
- To avoid conflicts between company and personal interests;
- To prevent the company trading while insolvent.
The corporations act also imposes responsibilities on the company. It is the director’s responsibility to ensure the company is compliant. These responsibilities include:
- Having a current registered office;
- Having a principal place of business;
- Disclosing personal details of directors;
- Notifying ASIC of any key changes;
- Paying relevant fees to ASIC;
- Checking annual statements.
If you have any questions on your responsibilities as a director please don’t hesitate to contact the NWA team on 02 9281 4067.
