14 - Directors' Duties

Understanding Director's Duties: Essential Legal Insights for Australian Business Owners In this episode of Business Know How, host Melissa Bush breaks down the legal obligations of company directors under Australian law. Melissa, a seasoned lawyer with over 30 years of experience, explains who qualifies as a director, including legal, de facto, and shadow directors, and why it matters. She covers key statutory duties detailed in the Corporations Act, such as the duty of care and diligence, acting in good faith, avoiding improper use of position, and preventing insolvent trading. Melissa also highlights the business judgment rule and the consequences of breaching director's duties, illustrated through a real court case. Practical tips for compliance and the importance of keeping accurate records are also discussed. 00:00 Introduction to Business Know How 00:57 Understanding Director's Duties 02:01 Types of Directors 04:27 Key Statutory Duties 08:35 Consequences of Breaching Duties 09:28 Practical Tips for Compliance 10:59 Case Study: MacArthur Farm Pty Ltd 14:04 Final Thoughts and Resources https://asic.gov.au/for-business/small-business/starting-a-small-business-company/small-business-com... https://www.aicd.com.au/content/dam/aicd/pdf/tools-resources/director-tools/individual/director-tool...   https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/nsw/NSWSC/2025/40.html