July 23, 2015
If you are a small business company director or thinking about a company structure for your business you need to be aware of the responsibilities of company directors. There are numerous and important legal responsibilities imposed on directors under the Corporations Act 2001 and other laws, including general law. These apply to directors of all companies no matter what their size.
To assist small business owners to understand their role and responsibilities as company directors, ASIC has released a new online resource ASIC Guide for Small Business Directors. ASIC Commissioner Greg Tanzer said, ‘Whether you’re a current director of a small business, or newly appointed, it’s important to understand what’s expected of you.’
The guide covers the following topics:
The guide is intended only as an overview of directors responsibilities to assist particularly small businesses to understand their obligations. Nevertheless, even if you think you are on top of the requirements it is worth checking the guide as the list of responsibilities is large and onerous. Probably in the interests of PR the guide does not list the penalties associated with breaches of the Act but in most cases they include civil and criminal provisions.
If this has grabbed your attention, some of the points worth noting include:
In the media release Commissioner Tanzer said, ‘Small business need clear and accessible information so they can make informed decisions about their business structure and meet their responsibilities.’ If you are in any doubt or want more information contact us at Riverwood Group where we can step you through the advantages and disadvantages of the company structure for your business. In the meantime, if you want to delve deeper the guide can be downloaded at www.asic.gov.au/sb-directors