Being a director of the company requires an instilment of virtues and responsibilities in every endeavour that you will take. Aside from the willingness to perform the needed tasks with utmost priority and concern, you should also be able to comply with the legal obligations found under the Corporations Act of 2001 and general law.
As a company director, you will be expected to perform your duties with full assuredness. You will have to steer clear of any issues relating to conflict of interests between yourself and the company while ensuring to put the best welfare of the latter to heart.
As previously mentioned, the director has the responsibility to adhere to the obligations set by the company rules, as mentioned in the Corporations Act 2001. These obligations include, but are not limited to, the following:
- A registered office address located in Australia, which ASIC must be informed of. A company cannot have a post office box as an office address.
- A business address which can be the same as with the office address, or somewhere different. However, like the requirement for an office address, ASIC does not allow post office boxes.
- Having an accurate and timely maintenance of financial records and transactions with up to date and detailed explanations of transactions and of the financial position of the company.
- The provision of the director’s personal details to the ASIC. These include full names, current residential address/es (again, no post office boxes), date and place of birth.
ASIC needs to be informed of any changes in the company i.e. office and/or business addresses, directors addresses & resignations & appointments, share issues and transfers. Fines issued by ASIC can apply if they are not informed when these changes occur.
Annual statements issued by the ASIC are in need to be examined to determine if they have the correct and up-to-date details of the company. Kindly note that relevant fees, such as the annual review fee, have to be paid.
So long as your understanding of your legal requirements as a company director remain in fulfilment with the requirements set upon yourself, it is improbable that you should get into any difficulty. Please be reminded to be meticulous in any of your dealings with the company and on its behalf, be updated regarding the company’s finance status and performance, and always act in the best interests of the company, shareholders & creditors. Most importantly, do not hesitate to seek for professional advice if any urgent and important concerns have to be addressed.