Duties of Directors - A Practical Guide
By Jeff Mansfield, Partner, Michael Ryan, Partner and David P. Selig, Partner
29 March 2010
The Partners of Addisons are pleased to present "Duties of Directors - A Practical Guide", providing an overview of the various obligations and responsibilities imposed on Directors of Australian companies. This Guide is intended to assist both newly appointed and long term Directors, as well as those considering an appointment as a Director.
As recent events have shown, the responsibilities that come with being a Director should not be taken lightly. Statutes, regulations and the common law impose numerous and far-reaching duties on Directors and, in many cases, impose serious personal penalties for their own acts and the acts of the companies they control.
The actions of Directors not only affect their companies, but also have significant consequences for shareholders, creditors and the community at large. For this reason, the law places a high burden on those who accept the role. Lack of knowledge or inexperience is not a valid defence and so it is critical that Directors understand their duties and can identify potential business hazards and risks as they arise and seek professional advice when required.
We trust that this Guide will be useful to you and your colleagues and our team looks forward to working with you.
The assistance of Nathan Greenfield, Solicitor and Leah Hecht, Clerk, of Addisons in the preparation of this Guide is noted and greatly appreciated.