Directors Duties

Directors Duties

The Corporations Act is not the only law in Australia that can impose personal liability on directors. Changes to the Work Health and Safety laws in each State mean that directors can now be liable for their company’s failure to comply with its health and safety obligations. In addition, directors can be liable for unpaid superannuation and other tax liabilities of their companies. Beck Legal’s corporate team provides comprehensive and easy to understand advice on managing compliance with the various duties imposed on directors.

Our Board & Director Services

Beck Legal provides advisory services to Boards and Management in all industries. A number of our lawyers sit on Boards and Management Committees, and have a unique and practical understanding as to how companies operate and what the key risk areas are.

Directors Duties

The risks for directors if they breach their duties include personal liability, reputational damage, and prosecution. Beck Legal’s corporate team can advise you on your obligations, including:

  • Tips to minimise the risks of insolvent trading.
  • Properly maintaining books and records in accordance with the Corporations Act.
  • Tips to meet the obligations imposed under the work health and safety legislation and reduce the risks of personal liability in the event something goes wrong, such as by undertaking and retaining records of risk assessments and training.
  • Compliance with the other key directors’ duties under the Corporations Act, including:
    • Acting with care and diligence;
    • Acting honestly and in good faith;
    • Not improperly using your position or information you obtain through your directorship to gain an advantage for yourself or someone else.

Other Board and Director Services

Our other Board and Director services include:

  • Director training.
  • Strategic advice on managing a breach or potential breach, including managing creditors.
  • Preparing policies (such as a conflict of interest policy) and advising on how they should be used in practice.
  • Preparing a Deed of Access, Indemnity and Insurance between directors and their company.
  • Reviewing directors and officers insurance policies to ensure they comply with current best practice and cover the most common risks we are seeing in practice.
  • Reviewing personal guarantees and advising on ways for directors to limit their exposure.

Why Beck Legal?

If you are a director, it is crucial that you understand your obligations. Beck Legal can help Boards and companies stay on top of their obligations and minimise risk.

If you would like more information about directors duties get in touch today.