Companies Now
call now: 1800 817 782

Your obligations as a company officeholder

 

As a company officeholder you must act with assuredness & commitment in the best interests of the company, preventing the company from trading whilst insolvent & steering clear of conflicts of interest between the company’s & your own.

 
  • One of your main duties is to understand what your company is doing at all times. You need to:
 

find out how any proposed actions will affect the company, especially if it involves large amounts of money,question managers and staff about aspects of the business if you need to, be active and engaged in directors’ meetings,get independent advice if you need more information to make an informed decision.

An officeholder also has the responsibility for the company adhering to it’s legal requirements as mentioned in the Corporations Act 2001.  These requirements include, but aren’t limited to, the following:

Accurate financial records & transaction maintenance, with up to date explanations & financial position of the company.

Informing ASIC of any changes in the company i.e. office and/or business addresses, directors addresses & resignations & appointments, & changes to shareholdings.  ASIC can apply fines if they are not informed when these changes occur.

Annual statements issued by ASIC need to be examined to determine if ASIC have correct details of the company & relevant fees to be paid such as the annual review fee .

Provided you understand your legal requirements, are meticulous in your dealings with the company & on its behalf, keep up to date regarding your company’s finances & performance, and act in the best interests of the company, its shareholders & creditors, it is unlikely that you will experience any difficulty.

Related Tag: How to Register a Company in Australia