Last updated August 2019
This chapter explains the roles, rights, obligations and liabilities of executive directors and officers of a company.
What is the role of an executive director?
Executive directors are people who are directors of a company for which they are also an employee.
Under the Corporations Act, a director will (unless the company’s constitution provides otherwise) have the power to manage the business of the company.
A company is a type of body corporate formed under the Corporations Law. It has a separate legal existence from that of its owners, managers, operators, employees and agents.
The Corporations Law refers to the Commonwealth statute, the Corporations Act 2001 (Cth), which regulates corporations inAustralia.
Often the chief executive officer, chief financial officer or managing director will be executive directors.