DUTIES OF SHADOW DIRECTORS – Your Brisbane based Experts
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.
Shadow Directors FAQ’s
What is a shadow director, and how can Brisbane Debt Solutions assist in this matter?
A shadow director is a person who is not formally appointed as a director of a company but who still exercises significant control or influence over the company’s affairs. Brisbane Debt Solutions can provide expert advice and assistance to individuals who may be considered shadow directors and help them understand their legal obligations and potential liabilities.
What are the consequences of being a shadow director in Brisbane?
Shadow directors may be held liable for the company’s debts and may face legal action if they breach their duties and obligations under the Corporations Act. This can include fines, penalties, and potential personal liability for the company’s losses. Brisbane Debt Solutions can provide advice on managing the consequences of being a shadow director and developing a plan to address any financial issues.
How can Brisbane Debt Solutions help to avoid being considered a shadow director in Brisbane?
Brisbane Debt Solutions can provide advice and assistance to individuals who may be at risk of being considered shadow directors, including those who provide guidance or advice to the company’s directors or who have a significant interest in the company’s affairs. This can include developing clear lines of authority and decision-making, ensuring transparency in financial transactions, and maintaining accurate records of meetings and communications. By taking proactive steps, individuals can avoid being considered shadow directors and potential legal and financial consequences.