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Responsibilities of Directors

Towers Business Development News

If you are invited to be appointed as a Company Director, your initial reaction may be one of pride. That is understandable. However, it is important that you understand the responsibilities of Directors and ensure that you have clearly identified these obligations, so that you can fulfil your duties in accordance with the law and the perceptions that relate to being a Company Director.

Directors need to have an awareness of the Corporations Act as this is the legislation that relates to the responsibilities of Directors.

It is also sound practice to have an awareness of the requirements of the Income Tax Act as it relates to lodgement of documents and payments required by the ATO, and payments so as to ensure that the company has not broken the law.

In some circumstances, amounts owing to the ATO can become a personal liability of a Director. Therefore, it is suggested that at each Director’s Meeting, you seek clarification as to the company’s position relating to payments of taxation and superannuation.

To gain an understanding of the responsibilities that relate to the Director’s role, you should read the Company’s Constitution. There may be specific responsibilities that have been documented in the Constitution that you should be aware of.

Please don’t hesitate to contact us on 07 4724 1118 or email for further discussion regarding this topic.

Responsibilities of Directors