Competent Commercial Lawyers and Corporate Lawyers will know that directors of companies owe their company a number of duties, known as director’s duties. The following are just some examples of director’s duties:
- A duty of good faith and diligence
- A duty to prevent insolvent trading
- A duty to avoid conflicts of interest
- A duty to exercise powers for proper purposes
Other than keeping to the director’s duties, directors are also expected to maintain proper records, attend board meetings and take an active role in the operation of the company.
The breach of director’s duties or obligations set out in legislation or common law can lead to severe repercussions for the offending director, including imprisonment, heavy fines and award damages. The director may also become personally liable for company debts.
Understanding the legal obligations that apply is the key to maintaining legal compliance. Many newly appointed directors feel uncertain about their role and what is required of them. Our Corporate Lawyers can walk you through what the law demands of you as a director.
With over a decade of experience in corporate law, speak to a Corporate Lawyer you can trust. To make an appointment with a Business, Corporate or Commercial Lawyer in Sydney, contact our main office line on (02) 9233 4048. To view a full list of our office branch addresses, click on the Locations tab.
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