director duties

• duty of good faith?


  directors must always act honestly and in best interests of company
• Duty of care and diligence?


  directors should take responsibilities seriously and be properly informed about the operations and financial position of the company
• Duty to disclose conflicts of interest:


  directors must tell the board about any conflict of interest regarding the activities and decisions of the company
• Duty to not trade while insolvent:

  a company is insolvent if it is unable to pay its debts when they are due.

  It is illegal for a company to carry on trading while insolvent.

  It is a duty of directors to be aware of the financial position of the company and to prevent insolvent trading
• Duty to keep books and records:

  a company must maintain adequate financial records to record and explain transactions, the company's financial position and profit.

  A director is in breach of the Corporations Act 2001 if adequate financial records are not maintained.