Question:

Director's duties?

by Guest57915  |  earlier

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as per corporation act 2001

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  1. 5.3  Duties and liabilities of directors.  



    In managing the business of a company , each of its directors is subject to a wide range of duties under the Corporations Act and other laws. Some of the more important duties are:

    · to act in good faith

    · to act in the best interests of the company

    · to avoid conflicts between the interests of the company and the director's interests

    · to act honestly

    · to exercise care and diligence

    · to prevent the company trading while it is unable to pay its debts

    · if the company is being wound up - to report to the liquidator on the affairs of the company

    · if the company is being wound up - to help the liquidator (by, for example, giving to the liquidator any records of the company that the director has).

    A director who fails to perform their duties:

    · may be guilty of a criminal offence with a penalty of $200,000 or imprisonment for up to 5 years, or both; and

    · may contravene a civil penalty provision (and the Court may order the person to pay to the Commonwealth an amount of up to $200,000); and

    · may be personally liable to compensate the company or others for any loss or damage they suffer; and

    · may be prohibited from managing a company.

    A director's obligations may continue even after the company has been deregistered.


  2. Ooooo... you need to look up the legislation - here is a little -taste from the Act.

    CHAPTER 2D--Officers and employees

    PART 2D.1--DUTIES AND POWERS

       180.    Care and diligence--civil obligation only  

       181.    Good faith--civil obligations  

       182.    Use of position--civil obligations  

       183.    Use of information--civil obligations  

       184.    Good faith, use of position and use of information--criminal offences
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