Generally, you must become familiar with your company’s business and how it is run and take reasonable steps to comply with the legal requirement to keep proper records and meet reporting requirements.

If your company is a “Small Proprietary Company” or a “Small Company Limited by Guarantee” you will generally not have to prepare formal financial reports each year and lodge them with ASIC. However, all companies must keep written financial records that correctly record and explain the company’s transactions, financial position and performance, and allow true and fair financial statements to be prepared and audited.

Your responsibilities as a director are not limited by your particular experience and background.

(Source: ASIC)

August 11, 2016 16:45