The Act clarifies and develops directors’ duties and provides much needed transparency in the operations and expectations of companies and their members on directors.
The existing common law and equitable principles will continue to be used as interpretive tools and reinforce the purpose of the legislation. The introduction of declarations and compliance statements should also increase director awareness and accountability for the obligations and restrictions imposed on them.
Directors should now consider the implications of the Act on the companies in which they are directors and familiarise themselves with their new and varied obligations to ensure both they and their companies are in compliance with the Act.
