ASIC has released a new online resource to help small business owners understand their role and responsibilities as company directors. 

'Whether you're a current director of a small business, or newly appointed, it's important to understand what's expected of you', said ASIC Commissioner Greg Tanzer.

'ASIC's guide for small business directors is particularly useful for small businesses looking to change from a sole trader to a company business structure.'

ASIC's guide for small business directors provides an overview of directors' duties under the Corporations Act with a focus on small business directors. The guide covers the following topics:

• what it means to be a company director
• how to become a company director
• directors' key responsibilities
• directors' liabilities when things go wrong
• how to resign as a director

'Small businesses need clear and accessible information so they can make informed decisions about their business structure and meet their responsibilities', Commissioner Tanzer said.

'ASIC's guide is part of a suite of resources produced by the Australian Taxation Office, Department of Industry and Science and ASIC to help small business owners understand the difference between operating as a sole trader and a company and the key responsibilities of company directors, including potential liabilities if things go wrong.'  

ASIC's guide for small business directors is available at www.asic.gov.au/sb-directors.

For further information on choosing the right structure for your business, visit www.business.gov.au/soletradertocompany.