What does it mean to be a company director? we'll take you through what should know about the key duties before you accept a director position.
A company is operated by directors and secretaries. Both have obligations under Australian legislation.
Limited liability, the ability to allocate shares to investors and a favourable tax regime are all perks of the company structure.
So what does it take to be a director at a startup? Below are some insights to guide you.
You can be a director if you are at least 18 years old and consent to being a director before you are appointed as a director. Seems like a pretty low threshold right?
In addition, to set up a proprietary company, at least one director needs to ordinarily reside in Australia.
In addition to the above requirements, you have legal responsibilities.
You should know that there is no such thing as a silent director that exists only on ASIC paper work and because of this, you need to be aware of whats required.
Regardless of whether you are a sole director at a company or one of many, you are legally responsible for how the company is run.
Directors and company secretaries have responsibilities per the Corporations Act, the most noteworthy include:
In addition to these general legal responsibilities, there are specific director responsibilities outlined below.
Responsibilities are inevitable with your director role. We’ve broken down those responsibilities into 3 categories: (a) general (b) administrative and also (c) company operations.
Especially relevant, key general director duties include:
As a director, you are also responsible for administrative duties to keep ASIC records up to date. The most noteworthy include:
Also, you may be interested to know we have templates to help you meet your administrative duties, simply click the button below to view our special package.
In addition, you are responsible for company operations including to:
If you are in doubt, gather more information before accepting a director position and get your own independent advice.
Finally, you should only agree to be a director if you can carry out the duties, no matter what anyone tells you, being a director will never be just a title, you will have responsibilities that cannot be pardoned by ASIC.
Do you need help from an Australian business lawyer for startups? Contact us today for help on email@example.com or 1300 478 278 Australia wide or on +61 2 9151 7233 from overseas. We are always glad to help.