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Director’s personal responsibilities

Towers Business Development News

Under the Companies Act, other legislation and the Company’s Constitution, Company Directors have a responsibility to perform their duties in an honest and responsible way.

Some of the key areas that Director’s responsibility relates to are:

Keep yourself informed of the company’s activities and the industry in which your company is involved.

Read reports before meetings. Turn up with your questions and comments relating to the company’s performance.

ASK QUESTIONS, especially if you don’t understand something. From a legal point of view, it can be very dangerous for you to agree to a decision that you do not fully understand as it could lead to litigation. It would have been far better to raise questions at the time and then you could have voted against a proposal. If you have not raised questions or opposition to a proposal that is then agreed to by the Board and recorded in the minutes that all Directors were in favour of the motion, you could encounter problems if there is litigation launched against the Directors.

Request legal or expert opinion on a matter been discussed by the Board if you do not understand something.

Read minutes of Board of Directors meetings and committee meetings very carefully. If you disagree with the minutes, discuss your disagreement with the Chair and follow through, to ensure that the minutes are amended, if there is agreement with your position.

If you have voted against something at a Board of Directors’ meeting, the minutes should record that you and potentially other directors voted against a particular motion. This is important.

Respect confidentiality. This is what director’s duties are based on.

If you encounter a conflict of interest or a major disagreement with the way decisions are being made, and you don’t believe you can perform your duties, you should consider resigning. It is advisable to talk to the Chair and potentially request legal advice on an issue.

Corporate Governance is an important issue for all companies. To find out how Towers Business Development can help your business with Corporate Governance issues, contact us on 07 4724 1118 or email .

Director’s personal responsibilities