Are you aware of Directors liabilities?

Directors of companies need to develop ‘observation skills’ so that they have an awareness of what is happening within the company of which they are a Director. Not merely being a ‘passenger’ without making any real enquiries relating to the company’s performance, level of debt, compliance with laws including:

Insolvent trading

Payments to the ATO

Payments of superannuation

WHS issues

Environmental issues

Fair Work Australia requirements

Workers compensation – policy and premium payment

Corporations Act relating to Directors’ Duties and Responsibilities and a wide range of other matters that Directors need to have an awareness of.

State government Legislation that will be of particular importance to some companies

Borrowings made by the company and the terms and conditions of those loans

An understanding of the company’s Constitution so that any deviations will be promptly noticed and acted upon.

Declaration of interests at Board of Directors meetings: some companies have processes that directors leave the meeting whilst issues that they had an interest in are discussed. A sound corporate practice is to ensure that the declaration of an interest and the withdrawal from the meeting whilst that matter is discussed are clearly recorded within the company’s minutes.

To find out more, contact Towers Business Development on 07 4724 1118 or email .