The importance of maintaining corporate records with ASIC

  • Retiring directors wishing to avoid personal responsibility for a company's conduct need to notify ASIC promptly and effectively.
  • The importance of complying with obligations set out in the Act is paramount, when considering the prospect of personal liability for departing directors, and compliance obligations for companies.
  • A recent case demonstrates the risks to resigning company directors when they, or the company, fail to notify ASIC of their resignation in a timely manner — as well as the consequent time, effort and costs needed to rectify these failures.

The Federal Court of Australia's recent judgment in the matter of Energy Resources of Australia Limited [2022] FCA 176 demonstrates the risks to resigning company directors when they, or the company, fail to notify ASIC of their resignation in a timely manner — as well as the consequent time, effort and costs needed to rectify these failures.

The decision is also a reminder that retiring directors wishing to avoid personal responsibility for a company's conduct need to notify ASIC promptly and effectively.

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