Directors’ Duties And Financial Reporting

It's the reporting season, and directors are busy making sure they comply with the disclosure requirements set by the Corporations Act and the ASX Listing Rules. Listed companies will shortly be releasing their results, if they haven't done so already.

Although the market's slide over the last year may have left a tarnish on once shiny results, directors must ensure that the results they disclose are accurate and reflect the company's true financial position.

Directors are at serious risk of breaching their duties if they provide incomplete or incorrect information, or omit information (whether falsely or inadvertently), which will therefore not give a true and fair view of their accounts.