Director’s Duties In A Nutshell

Directors responsibilities and obligations are regulated by the Corporations Act 2001, the Common Law, and Equity. Quite simply the main duties and obligations are to be fair, diligent, and honest. In summary the Act says: • Take reasonable care when making a business decision. • Act always in the interest of the company. • Consider the interest of shareholders and creditors. • Don’t misuse your position for personal gain. • Remember it’s an offence if a Director is reckless, deliberately dishonest or fails to exercise their powers and duties in good faith. • Keep personal interest separate from dealings as a director of the company. • Avoid Insolvent trading.