Employees and directors comply with their instructions, which streamlines company process. An individual should be mindful of their role in a company, given the above information. As a de facto director, an important fact to note is that he is held equally liable for obligations of the company as are other directors.

Shadow Directors have the following duties:

• Prevent insolvent trading
• Practice care and skill
• Act in the best interest of the company (good faith)
• Practice their power as a director for a proper purpose
• They have a duty not to gain advantage for themselves, someone else, or cause detriment to the company by incorrect use of their place; and
• Release any material or personal interest that they may have in a matter, that relates to company affairs.

Are you unsure whether you are a shadow director? Brisbane Debt Solutions can help. Phone us on 1300 88 70 93, or fill out our contact form and we will respond quickly.