Key Provisions and Guidelines For A Director Expanded

Here is an extensive list of duties that a director is expected to perform for the success of the institution. A director must commit to duties and responsibilities imposed by the institution.
Here is an extensive list of duties that a director is expected to perform for the success of the institution. A director must commit to a:
  • Duty to act with care and diligence: Directors are required to exercise the degree of care and diligence that a reasonable person would exercise in the same circumstances. This includes being informed about the company’s business and regularly reviewing its performance.
  • Duty to act in good faith in the best interests of the company: Directors must act in good faith and in the best interests of the company as a whole, rather than in their own interests or the interests of any particular group of stakeholders.
  • Duty to not improperly use position or information: Directors must not improperly use their position or information obtained through their position for their own benefit or the benefit of others.
  • Duty to disclose interests in transactions or agreements: Directors must disclose any interest they have in a transaction or agreement that the company is entering into, if the interest could conflict with the interests of the company.
  • Duty not to accept benefits from third parties: Directors must not accept benefits from third parties that could influence the exercise of their powers or the performance of their duties as a director.
  • Duty to prevent insolvent trading: Directors have a duty to prevent the company from incurring a debt if they have reasonable grounds to suspect that the company is insolvent or would become insolvent if the debt were incurred.
  • Duty to disclose material personal interests in a matter: Directors must disclose any material personal interest they have in a matter that the company is considering or dealing with.
  • Duty to act honestly and in good faith: Directors must act honestly and in good faith in the best interests of the company and for a proper purpose.
  • Duty of due care and diligence: Directors have a duty to exercise due care and diligence in the performance of their role.
  • Duty to act in the best interests of the company: Directors must act in the best interests of the company as a whole, rather than in their own interests or the interests of any particular group of stakeholders.
  • Duty to disclose interests in transactions or agreements: Directors must disclose any interest they have in a transaction or agreement that the company is entering into, if the interest could conflict with the interests of the company.
  • Duty not to accept benefits from third parties: Directors must not accept benefits from third parties that could influence the exercise of their powers or the performance of their duties as a director.
  • Duty to prevent insolvent trading: Directors have a duty to prevent the company from incurring a debt if they have reasonable grounds to suspect that the company is insolvent or would become insolvent if the debt were incurred.
A director must also understand the following key terms: 
  • Directors’ Responsibilities: This guide provides an overview of the legal responsibilities of directors, including their duties and obligations under the Corporations Act and other relevant laws.
  • Directors’ Duties: This guide provides a detailed explanation of the duties of directors under the Corporations Act, including their duty to act in good faith, to exercise care and diligence, and to avoid conflicts of interest.
  • Directors’ Duties: Solvent and Insolvent Companies: This guide provides an explanation of the specific duties of directors when a company is solvent or insolvent, including the duty to prevent insolvent trading.
  • Corporate Governance: A Guide for Directors of Listed Entities: This guide provides guidance for directors of listed companies on the principles of good corporate governance, including transparency, accountability, and integrity.
  • Corporate Governance for Proprietary Companies: This guide provides guidance for directors of proprietary companies on the principles of good corporate governance, including transparency, accountability, and integrity.
  • Corporate Governance for Not-for-Profit Companies: This guide provides guidance for directors of not-for-profit companies on the principles of good corporate governance.
 

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NOTE: Laws and regulations 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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