Are you across your obligations as a company director?

Running a business comes with plenty of competing priorities, but company directors are being reminded that understanding their legal obligations cannot fall off the list.

New research commissioned by the Australian Securities and Investments Commission (ASIC) has highlighted gaps in how small business directors understand and keep up with their responsibilities.

ASIC surveyed 400 directors of companies with up to 100 employees, annual revenue of up to $50 million and assets of up to $25 million.

Almost half, 49 per cent, identified a lack of time and resources to stay across information and updates as a barrier to meeting their director obligations. The same proportion pointed to having too much regulation to keep on top of, while 44 per cent cited the cost of professional advice.

Perhaps more concerning, one in five directors surveyed had never accessed information or sought advice about their obligations, while one in three had little or no understanding of the consequences of breaching them.

ASIC Commissioner Kate O’Rourke said small business directors were operating in an increasingly complex environment while juggling competing responsibilities, changing business conditions and legal obligations.

To make that information easier to access, ASIC has launched its Small Business Director Essentials hub, bringing practical guidance, learning modules and tools together in one place.

The free resource covers different stages of running a company, from planning and setting up through to operating, dealing with financial difficulty, restructuring and closing a business. It also includes a director roadmap and online learning modules.

The research also reinforces the role professional advisers play in helping businesses navigate compliance.

Among directors who had accessed information or sought advice about their obligations during the previous 12 months, 87 per cent had used an accountant, while 46 per cent had used ASIC’s website.

For company directors across the City of Moreton Bay, the new hub provides an opportunity to check what is expected of them and identify areas where professional advice may be needed.

Director responsibilities do not disappear when business gets busy. With time and regulatory complexity among the biggest barriers identified by directors themselves, having reliable information in one place could make staying across those obligations a little easier.

Find out more: Visit ASIC’s Small Business Director Essentials hub for free guidance, learning modules and tools for company directors.