Director’s Responsibilities

Director’s Responsibilities

Taking on a directorship of a company brings many responsibilities including Corporations Law responsibilities, in particular the case where a company is liquidated the liquidator will carefully review the actions of the directors, particularly their management of it’s financial affairs.

Directors may leave themselves open to action by the liquidator if they are derelict in their duties to :

  • Prevent insolvent trading by the company i.e. ensuring the company can pay its debts as and when they fall due.
  • Act inappropriately in relation to voidable transactions.
  • Fail to respond to directors penalty notices issued by the ATO
  • Breach common law or equitable duties requiring directors to take into account the
  • interest of creditors when the company is insolvent.

Directors can be held personally responsible for insolvent trading unless the director can produce evidence that they acted reasonably and consistently with their duties to ascertain the financial position of the company and without demonstrating that their expectation of solvency was based upon that information.

Readers should not act or rely on this information without first seeking out professional advice concerning their particular circumstances

COVID-19 Announcement

Please be advised that our offices are open however due to social distancing regulations for the foreseeable future we will be limiting face to face conferences.

For clients regarding wills, power of attorneys and enduring guardianships we will organize to hold the meeting in a conference room that meets the social distancing rules.

We will be conducting our conferences via video conferencing or phone where necessary. At this point we will not be able to conduct any Notary Appointments.

Be assured that all property settlements will not be affected and will continue to be transacted electronically.  Russell Kelly & Associates is a certified accredited participant in Property Exchange Australia (PEXA).

We will be monitoring the governments responses and will update as necessary.