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ARTICLE · 07 DECEMBER 2021

Do you know your director duties and its ramifications?

Worrells
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Directors should look at the company's financial position in sufficient detail to satisfy themselves that it is solvent.

AustraliaCorporate/Commercial Law
Scott Andersen
Scott Andersen
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ASIC'S FLURRY OF DISQUALIFICATIONS, BANNINGS, AND CHARGES.

A quick visit to the Australian Securities and Investments Commission's (ASIC) news centre shows a flurry of activity regarding regulator action over director duty failures and breaches.

Here's a snapshot of last month's press releases:

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According to ASIC's website directors/officers key duties, which are predicated on the Corporations Act 2001 and common law, include1:

  • being honest and careful in all your dealings
  • understanding what your company is doing
  • making sure your company can pay its debts on time
  • ensuring your company keeps proper financial records
  • acting in the company's best interests, even if this conflicts with your personal interests

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