Directors govern a company on behalf of its shareholders. The Corporations Act imposes a variety of statutory duties upon directors. All directors have legal duties and responsibilities found under the Corporations Act and/or common law:
- A director must exercise their powers and discharge their obligations with reasonable care (Section 180);
- A director must exercise their powers and discharge their duties in good faith, in the best interests of the company and for a proper purpose (Section 181);
- An officer must not improperly use their position to gain advantage for themselves or someone else, or to cause detriment to the corporation (Section 182);
- An officer must not make improper use of information for personal advantage or to the detriment of the corporation (Section 183);
- A duty to act honestly and in good faith (Section 184);
- An officer who delegates any of their powers to someone else is responsible for the actions of the delegate (Section 190);
- A duty to disclose all material personal interests (Section 191);
- A duty to keep proper books and records that explain transactions and the financial position of the company (Section 286)
- A duty to avoid insolvent trading (Section 588G).
If you require assistance with understanding your directors’ duties or are being investigated for a breach of these duties, you may wish to contact our office and arrange an appointment to see one of our Business & Online Start-Up Solicitors in our Sydney office. By appointment, we can also arrange a time for you to see one of our lawyers at a branch office. For a complete listing please see our "Locations" tab.
This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.
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