A Quick Guide For New Directors and Shareholders

Directors of companies in Australia have a range of responsibilities and obligations under the Corporations Act 2001 (Cth) and other regulations.

Directors of companies in Australia have a range of responsibilities and obligations under the Corporations Act 2001 (Cth) and other regulations. These include a duty to act in the best interests of the company and its shareholders, a duty to exercise care and diligence, and a duty to disclose any conflicts of interest.

Key Details Directors and Shareholders Must Know

  • Directors of public companies have additional reporting obligations, including the requirement to prepare and lodge financial reports with the Australian Securities and Investments Commission (ASIC) and to hold annual general meetings.
  • A controlling entity is a person or group of persons who control or influence the company’s policy and decision making.
  • Shareholders of companies, both public and private, have certain rights under the Corporations Act, including the right to receive notice of and attend general meetings, the right to vote on certain matters, and the right to receive dividends. Shareholders of private companies also have the right to request information about the company.
  • A company constitution is a document that sets out the rules and regulations that govern the internal management and administration of a company. It typically includes information such as the company’s name and registered office, the types of shares that can be issued, the rights and responsibilities of shareholders, the powers and duties of the directors, and the procedures for holding meetings and making decisions.
  • In terms of shareholders rights, shareholders of private companies have the right to request information about the company, by requesting it from the company or searching for it on the Australian Securities and Investments Commission (ASIC) website.
 

Overall, the Corporations Act 2001(Cth) and other regulations impose a range of obligations on directors and shareholders in order to ensure the proper management and governance of companies in Australia.

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NOTE: Regulatory Guides are subject to change and are updated regularly.

It’s important to note that the specific requirements can vary depending on the specific situation. It’s always best to consult your professional team if you have any doubts or questions about these obligations. This is only intended to inform, not advice.

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