The directors control the day to day running of a company on behalf of shareholders. Depending on the size of the company and its business, staff may be employed to carry out its functions.

The Corporations Act 2001 (Cth) and common law principles set out a director’s duties. There can be serious consequences for breaches of these duties by a director.

The directors must act in the best interests of the company at all times and cannot act in their own self interest at the expense of the company.

Visit the ASIC page Running a Company - Company Office Holder Duties for more information about the duty of company office holders. If a person does not understand their role as a director, it is vital to get professional advice. There are ongoing obligations that cannot be avoided. Resigning as a director does not absolve the person of responsibility.

The remainder of this chapter summarises some of the important duties of a company director.