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Corporation Act, 2001 is the legislation that governs the business entities in Australia. Australian Securities and Investment Commission (ASIC) administers the said act. The corporation act is basically inspired by the UK Company Law. The act regulates the incorporation, dissolution and structure of a company in Australia, along with duties of the officers, takeovers and other related matters of the company.
Directors are the people who are entrusted with the function of managing a company by the shareholders of the company in a general body meeting of the company. Directors are delegated authority and responsibility in this regard. Professional people with experience are generally selected for such a post by the owners so that the company is run effectively and efficiently (Asic.gov.au, 2015). The definition of a director is provided in the Corporation Act, 2001 as follows:
As per Section 9 of Corporation Act, 2001 a director is a person who (Austlii.edu.au, 2015):
Is appointed in the capacity of a director by the shareholders
Is appointed as an alternate director of the company in certain cases and is required to function in such capacity
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