When asked by that trusting friend/colleague to join them as a Director in their company.... Are you aware of the responsibilities that you are signing up for? Being a silent Director, does not mean that your duties as a Director are silenced. You can be prosecuted just the same, should something go wrong!
Read on, as we explore the nitty gritty of Directors Duties, Corporate Responsibilities and Consequences of non-compliance.
Who is ASIC and why do they exist
The Australian Securities and Investments Commission (ASIC) is an independent Australian Government body that acts as Australia's corporate regulator. ASIC's role is to enforce and regulate company and financial services laws to protect Australian consumers, investors and creditors.
Being a Director of a company; your responsibilities
As a Director of a company you are responsible for the management of the affairs of the company. You must comply with your legal obligations as a director under the Corporations Act 2001. This is the case even if you have appointed Halpin Partners Accountants as your ASIC registered agent to look after your company's affairs. There are numerous and important legal responsibilities imposed on directors under the Corporations Act 2001.
Of these duties, some of the most significant are:
Incorporating a company; your responsibilities
The Corporations Act 2001 also imposes responsibilities on the company. As a director of the company, you are responsible for ensuring that the company complies with these obligations. These responsibilities include:
Consequences of failing to perform your duties as a director
If you fail to perform your duties as a director, you may:
It is important to consider the various obligations, risks and responsibilities before agreeing to take on a directorship within a company. Before taking on a directors role, we always recommend discussing your plans with your accountant and solicitor.
Content sourced from: www.asic.gov.au