Meticulous attention to compliance and statutory obligations is essential to meet duties to stakeholders and comply with banking covenants. Financial management issues must be addressed daily and reports prepared promptly.
Our Business Lawyers can assist with concise advice concerning the housekeeping and secretarial functions for your company or business.
What are the duties and responsibilities of directors?
Managing the business of a company is the responsibility of the directors. Their duties are derived from the Corporations Act, the constitution of the corporation and other agreements (for example the agreements with shareholders or executive service agreements).
The duties of the directors include:
- exercise due attention and diligence in carrying out their responsibilities;
- act in good faith in the company’s best interest;
- to exercise their powers in a proper manner;
- to not misuse their position or information received from their position in order to benefit themselves or others or to damage the company;
- avoid conflicts of interest between responsibilities and personal interests;
- keeping precise financial records and reporting on the company’s financial affairs;
- to not impede trading;
- to not allow the company to trade while it is insolvent.
Infringement of these duties can lead to severe penalties and adverse consequences, including:
- personal liability for third party losses.
- pecuniary penalties;
- imprisonment in serious cases;
- disqualification from being a company director.
Business governance protocols
When you start a business, our business lawyers can help you establish the best practice procedures for its governance and reporting.
We can also provide comprehensive advice on:
- Duty and liability of directors and owners;
- Promoting and planning board and shareholder or business owner meetings;
- Advising as to Corporations Act filing requirements;
- Urgent resolutions;
- Secretarial duties within the company or business;
- General good governance practical advice.
Our QLD Business + Property Lawyers offer reliable, practical legal advice on compliance frameworks aimed at supporting clients with their business governance requirements.
We can provide support and guidance on corporate governance issues such as the composition of boards; structuring and implementing governance structures, including authority delegations, report authorisations and execution protocols; and procedures for contract review.
If you require any assistance, please contact our business lawyers today to discuss your needs.