04 Mar Owning a Company
The responsibility that comes with owning a company
When we own a small business, it can feel like it is simply an extension of ourselves. However, if you operate through an incorporated company (a company that has ‘Ltd’ at the end of its name), then this is a separate legal entity, and the director/s of that company have certain responsibilities. These responsibilities often aren’t considered by company directors of both small and large companies.
Unfortunately for the directors of failed company Mainzeal, they have been reminded, through being ordered to pay $36 million in damages as a result of negligence (you can read about it here)
While such punitive action is unlikely to be dished out to small, privately owned companies, it does serve as a good reminder of the responsibility that comes with being a company director. If you’re not too sure what comes with the territory of being a company director, have a read of this from the Companies Office.
