Comply with directors' general law and statutory duties
Directors owe duties of care and diligence (s 180), good faith (s 181), no improper use of position (s 182) or information (s 183).
Who must comply
All directors and officers of companies.
What triggers it
Holding office as a director or officer.
When due
Continuous obligation.
Evidence required
Board minutes showing informed decision-making, registers of interests, conflict-management protocols.
Max penalty
Civil penalty up to $1.565M for individuals (15,000 penalty units), or 3× benefit; criminal for dishonest conduct
Summary
Directors' duties under the Corporations Act 2001 (Cth) require directors to act with reasonable care and diligence, in good faith in the best interests of the company, not to improperly use their position or information for personal gain or to cause detriment, and to prevent insolvent trading. The business judgment rule (s 180(2)) provides a safe harbour for honest, informed decisions made in good faith.
Enforced by
Source legislation
Entity types
Topics
Source: https://asic.gov.au/for-business/running-a-company/company-officeholder-duties/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.