Director's Responsibilities Specific to Australia Queensland



Table of Contents

Introduction3

Discussion3

Managerial responsibilities3

Duty to Act within Powers3

To Act in Good Faith3

Not to Act For an Improper Purpose4

To Retain Discretion4

To Avoid Conflicts Of Interest4

Express provision in constitution5

Financial Management5

The Role of the Director5

Commitment6

Management Accounts6

Other Statutory Duties7

Full disclosure and approval7

Consequences7

Conclusion7

Director's Responsibilities Specific to Australia Queensland

Introduction

It is easy to be a director but a director, who is responsible, is not something to easily be. Looking for too much perfection can mean that a task can become a disaster. A director believes in being decisive than being too right. He never invites failure. Mistakes are a human limitation, but a director believes in correcting them. A director believes in his philosophy 'The Better Way'. In this philosophy, one learns from small steps instead of attempting to get all steps correct at once. He is so much dedicated to the dedication that, he thinks it is better for something to be done than being just perfect. Often, he has been in situations where everyone predicted that he would fail because of his desire to overreach. He always had in his eyes that his company would not just be conventional but be something more. Using your talents to the best advantage of the company, and acting with integrity and honesty is what being a responsible director means. Under the criminal and civil law, the disqualification from holding office as a director, and the ever increasing legal responsibilities and obligations being placed on directors, needs developing an awareness and understanding of. Seeking in companies, the promotion of management's better standards has been the thrust of much recent legislation. The effect has been, on all directors, to create an increased burden of responsibility, irrespective of the nature and size of the enterprise which they manage whilst the aim was to curtail irresponsible directors.

Discussion

Managerial responsibilities

A company is not a living person and so, to ensure that the company does everything that is required of it is the directors who must do it. These duties include the maintenance of accounting records and statutory books and the financial management of the company. For taking appropriate steps for implementing systems of monitoring to protect the company's assets and to detect and prevent fraud, the directors are also responsible.

Duty to Act within Powers

A director must only, for their proper purpose, exercise his powers and must, with the constitution of the company, act in accordance. In accordance with the Articles and Memorandum, under which directors must act, this duty replaces the common law principle. Such matters will be, by previous case law, determined and what are proper purposes, the 2006 Act does not set out. When proper purpose is being determined, it is the enthusiasm of the director which is significant and this means that.

To Act in Good Faith

In the interests, as a whole, of the company, and to act in good faith (bona fide), directors have a responsibility. A subjective test of “good faith or honesty” is the test as to whether this responsibility has been ...