Do you know your duties as a company director?

Knowing and fulfilling your duties as a company director is essential when running a business. The Corporations Act 2001 stipulates general duties that company directors and officers are bound by.

General Duties

Some of these duties include:

  • Keeping yourself properly informed about the financial position of the company and ensuring that the company does not trade whilst insolvent. “An understanding of the financial position of your company only at the time you sign off on the yearly financial statements is insufficient. You need to be constantly aware of your company’s financial position.” Reference: ASIC, What are my Duties as a Company Director?
  • Acting in good faith and within the best interest of the business and for proper purpose
  • Not to use your position as a director improperly to gain advantage (for you or another person), or to cause any disadvantage to the company
  • Not to use your position as a director improperly by taking information to gain an advantage (for yourself or another person), to cause any disadvantage to the company

Have you received a Director Penalty Notice (DPN)?

A Director Penalty Notice (DPN) is a tool used by the Australian Taxation Office (ATO) to recover certain debts owed by a Company.  As Director of a company, you are responsible for ensuring that your tax and superannuation obligations are met. If the company fails to pay certain liabilities, the ATO can recover the outstanding amounts for you personally as a current or former company director.

If issued with a DPN, as a director of the company, you become personally liable for the company’s unpaid amounts of PAYG, GST and SGC.

To learn more, download our Director Penalty Notice flyer below.

Are you concerned about your financial position? Contact us now for an obligation free consultation.