14 - Directors' Duties
Understanding Director's Duties: Essential Legal Insights for Australian Business Owners In this episode of Business Know How, host Melissa Bush breaks down the legal obligations of company directors under Australian law. Melissa, a seasoned lawyer with over 30 years of experience, explains who qualifies as a director, including legal, de facto, and shadow directors, and why it matters. She covers key statutory duties detailed in the Corporations Act, such as the duty of care and diligence, acting in good faith, avoiding improper use of position, and preventing insolvent trading. Melissa also highlights the business judgment rule and the consequences of breaching director's duties, illustrated through a real court case. Practical tips for compliance and the importance of keeping accurate records are also discussed.
00:00 Introduction to Business Know How
00:57 Understanding Director's Duties
02:01 Types of Directors
04:27 Key Statutory Duties
08:35 Consequences of Breaching Duties
09:28 Practical Tips for Compliance
10:59 Case Study: MacArthur Farm Pty Ltd
14:04 Final Thoughts and Resources
https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/nsw/NSWSC/2025/40.html
