Questions:

Yes

No
Did you know…
  • Directors are personally liable for company liabilities incurred whilst the company is insolvent?

  • Directors are personally liable for PAYG withholdings that remain unpaid and unreported within 3 months of them becoming due?

  • Directors are personally liable for superannuation that remains unpaid and unreported within 3 months of it becoming due?

  • Director Penalty Notices sent to an old address are still taken to have been served, irrespective of receipt?

 

Incoming directors

Given the potential exposure to personal liability, you should ensure that you undertake thorough due diligence on any company prior to consenting to act as a director.

Incoming director due-diligence:
Questions:

Yes

No
  • Are you aware of the financial position of the company?

  • Is the company solvent?

  • Has the company lodged its Business Activity Statements on time?

  • Does the company have any tax liabilities?

  • Is the company complying with its PAYG and superannuation withholding requirements?

  • Have any Director Penalty Notices been served on current directors?

 

Current directors

Current directors should continuously review the systems and processes the company has in order to minimise personal risk.

Continuous review
Questions:

Yes

No
  • Does the company have a system in place to ensure that it lodges its Business Activity Statements on time?

  • Does ASIC have your correct address?

  • Does the company have a reminder system in place to update director addresses?

 

Asset Protection

Given the increased risk of personal liability faced by directors, it is imperative that all directors structure their personal affairs to minimise risk to personal assets.

Key asset protection questions
Questions:

Yes

No
  • Do you own your family home in your own name?

  • Have you established a family trust to hold assets?

  • Have you disposed of assets for less than market value or on non-arm’s length terms?

  • Are you insured as a director?

  • Are you owed any money?

  • Are you a beneficiary under a will?

 

 
At Pointon Partners we can assist with a wide range of advice to incoming and current directors to minimise personal risk and associated risk to personal assets. Our thorough knowledge of bankruptcy law and the relevant legislation enables us to advise you of any anticipated problems which may arise.

If you have queries or wish to discuss any of the above, please contact one of the key contacts below or your regular solicitor at Pointon Partners.

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