Personal Liability of Directors – Take a Directors’ Health Check

By Judy Cullinane • In Commercial LawComments Off on Personal Liability of Directors – Take a Directors’ Health Check

Are you stressed, is your blood pressure up….not that type of health check, a Directors’ Liability Check:

  • Do you know that if you breach your directors’ duties you may be personally liable?
  • Do you know this can include liability for compensation, civil and criminal penalties?

Symptoms – How to check

  • Do you understand your legal duties as a director?
  • Do you comply with these duties?
  • What insurance cover does the company have to protect you as director?
  • Does your company provide you with Indemnity?

What can cause the symptoms?

Have you and your company complied with the laws relating to:

  • Taxation
  • Superannuation
  • Occupational Health and Safety
  • Environmental Protection
  • Competition and Consumer Regulations
  • Corporate and Financial Regulations
  • Insolvent Trading

Is your blood pressure starting to rise again?

Who can hold you liable as director?

  • The company of which you are a director
  • The company’s shareholders
  • A liquidator
  • ASIC (Australian Securities and Investment Commission)
  • APRA (Australian Prudential Regulatory Authority)
  • Other regulatory bodies

How to treat your symptoms to make you feel better?

  • Mitigate your risk through directors’ and officers’ insurance and company indemnities
  • Understand your duties and how to fulfil them
  • Ensure best corporate governance standards are met by your company
  • Understand the Business Judgement Rule
  • Ensure your company never trades insolvently

Is your blood pressure still not returning to normal – Are you a director and you are not sure you are protected?

The Commercial team at Bell Legal Group can assist you with treating your symptoms and ensure you understand your duties as a director and how to mitigate risks as a director.

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