Receivership
Learn more about receivership for a corporation and its directors.
Director
Small business restructuring
Learn more about small business restructuring, which allows certain corporations to enter into a restructuring plan with creditors while the directors to keep control of the corporation.
Voluntary administration
Learn more about voluntary administration as an insolvency procedure and how it differs to a special administration.
Legal duties of directors and other officers
Why legal duties exist
Corporations rely on people to do things on their behalf. Members give directors and other key decision-makers a significant level of control and responsibility for a corporation. So, directors and other key decision-makers directly influence the corporation’s success, legal compliance and reputation.
The duties keep directors loyal and accountable to the corporation. The duties are designed to make sure directors and other officers:
Delegating board powers
Delegating is a process of giving a task, authority or responsibility to another person. It helps you spread a workload to help get things done more efficiently.
A person who is authorised to use the powers on behalf of the board of directors is a delegate.
To delegate authority:
Board responsibilities
Be accountable to members and other stakeholders
The board needs to understand and take into account the interests of members and other stakeholders. This is because the board is appointed by members to represent their interests, and drive the corporation’s financial performance, operational results and governance standards. Depending on the nature of their activities, some corporations have other stakeholders, such as funding bodies, an industry standards body, contract managers, customers, and employees.