Question: What are your responsibilities as director of a company?
Generally, your primary duty is to the shareholders. As outlined by ASIC, your general duties under the Corporations Act include:
the duty to exercise your powers and duties with the care and diligence that a reasonable person would have which includes taking steps to ensure you are properly informed about the financial position of the company;
the duty to exercise your powers and duties in good faith and in the best interests of the company;
the duty not to improperly use your position to gain an advantage for yourself or someone else, or to cause detriment to the company;
the duty not to improperly use information. In addition to your general responsibilities as director, you have a positive duty to prevent your company from trading if it is insolvent.
Your company must also keep adequate financial records that correctly record and explain transactions, and the company’s financial position and performance.
Ursula is General Counsel at LegalVision. She has over 15 years' local and international investment banking and corporate law experience. Ursula has expertise in capital raising, mergers and acquisitions, information technology and general corporate law. Ursula is an active member of Australia's entrepreneur community and speaks, writes and is interviewed on issues relevant to startups and established businesses.
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