The Australian Securities and Investments Commission (“ASIC”) is an independent organisation that regulates companies and the financial services sector within Australia. ASIC also monitors, investigates and enforces compliance of the Corporations Act 2001 (Cth).
The Corporations Act prescribes obligations on various stakeholders of a company including its’ directors. Some of the directors’ duties include:
- Disclosure of personal interests that may conflict with their duties as a director;
- Ensuring the company maintains required financial records;
- Being honest and acting in the company’s best interests;
- Avoiding the use of any information obtained in the course of business for their own personal advantage.
Some of the company’s statutory duties include:
- Notifying ASIC of variations to company details including the registered office, officeholders, shareholders and company name;
- Displaying ACN or ABN on company documents;
- Maintaining minutes of meetings;
- Maintaining accurate financial records and lodging the required statements by the due date;
- Paying all prescribed fees by the due date.
ASIC may provide written notification to companies who have failed to comply with their obligations. This notification will set out the steps required to be undertaken by the company to rectify the breach. If the company fails to sufficiently remedy the breach, ASIC may commence formal action against the company. Such action may include legal proceedings from which fines or more serious penalties may be available.
If you are unsure of your corporate obligations, or if you have had contact with ASIC in relation to alleged breaches of the Corporations Act, we recommend that you contact our office and arrange an appointment to see one of our Compliance & Regulatory Law Solicitors in our Sydney office. By appointment, we can also arrange a time for you to see one of our lawyers in one of our branch offices. 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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