Most people do not realise that they can potentially be held personally liable for the debts of their company during the time they are directors – even if they are silent directors, or later leave the company.
That’s why it is important to know your responsibilities and obligations as a company director.
To help, Australian Securities & Investments Commission (ASIC) has developed the ASIC guide for small business directors. The guide will help you understand the roles and responsibilities of a director, and provide advice about what to do if things go wrong – for example, if the company begins having financial difficulty.
Even if you have been a company director for years, it is still a good idea to refresh your knowledge because the rules can change over time.
For example, did you know that directors are legally liable for pay as you go withholding and super guarantee charge payments?
Whether you are an experienced director or new to the role, read the ASIC guide for small business directors today.
- Australian Securities and Investments Commission (ASIC) ASIC guide for small business directorsExternal Link
- Business.gov.au Checklist – Key differences between sole traders and companies