DUTIES AND RESPONSIBILITIES OF DIRECTORS AND OFFICERS

Duties and Responsibilities of Directors and Officers is a comprehensive, plain-English guide to the law affecting Australian directors and officers. It provides concise and essential information on duties, responsibilities and personal liability of directors and officers under the Corporations Act and the Common Law. The book is currently in its 18th edition and is updated annually.

As well as company law, directors and officers need to be aware that a range of other rules affect their obligations as directors and officers of companies, including responsibilities under the trade practices legislation, environmental law, occupational health and safety, equal opportunity, taxation, and the new privacy principles. In addition the Commonwealth Criminal Code which came into effect on 15 December 2001 places a premium on compliance. The list of rules affecting directors is ever-increasing.

Risk management and corporate compliance are now central features of the organisation of a company and compliance by its directors and officers. A failure to ensure that the company complies strictly with laws in these and other areas may have far-reaching ramifications for company directors and officers.

The duties and responsibilities apply to public and private (proprietary) companies. Expert advice should be sought by directors and officers, irrespective of the companies from which they come, a large public company or a small one-person company that is now permitted. Such expert advice can be sought from lawyers, accountants, or stockbrokers in certain circumstances.

Company law is constantly the subject of review by the courts and by the parliament. As important decisions are handed down by the courts they are noted in 'Law Reporter', published in Company Director. Directors should be aware, however, of the fact that these discussions are limited in nature and, wherever possible, they should seek individual expert advice.

For directors who wish to have a more detailed knowledge of all aspects of this area of the law, and its application, AICD conducts the Company Directors Course and provides a series of other useful publications.

AICD publications has a comprehensive selection of books, manuals and software to help you in your role as a director, all available at a discounted price to AICD members. Search the Online Bookshop.