If you are a director of a small company, you carry the same core legal duties as the director of a large one. The company may be just you, a laptop and an ABN, and the duties still apply.
In August 2026, ASIC launched a new online resource to help directors of small companies understand and meet those duties. It is called the Small Business Director Essentials hub, and it brings ASIC’s guidance for small company directors together in one place.
Here’s what you need to know.
What Is the Small Business Director Essentials Hub?
The Small Business Director Essentials hub is a dedicated section of ASIC’s website for directors of small companies. It brings together practical guidance, free online learning modules, short videos and links to support services, organised around the stages of a company’s life rather than around the legislation.
ASIC launched the hub alongside its refreshed Small Business Strategy, which sets out how ASIC intends to support Australia’s more than 2.7 million small businesses through four areas. ASIC describes them as educate, simplify, engage and collaborate, and protect and enforce.
The hub is the “educate” part. ASIC has been equally clear that it will continue to take enforcement action against illegal phoenix activity and other conduct that harms creditors and honest businesses.
Why Has ASIC Created It?
Before building the hub, ASIC surveyed 400 directors of small companies in 2025. The results, published with the launch announcement, explain why ASIC believes directors need it.
- One in three directors had little or no understanding of the consequences of breaching their duties.
- Almost half (49%) said they lacked the time and resources to stay across their obligations, and the same proportion said there was too much regulation to keep on top of.
- 44% said the cost of professional advice was a barrier, and 41% said the cost of maintaining compliance was.
- One in five had never sought information or advice about their director duties from any source.
- Among directors whose company had experienced financial difficulty in the previous 12 months, the most common response (55%) was to personally borrow more money and put it into the company.
That last finding deserves attention. Borrowing personally to keep a struggling company afloat may increase your personal exposure without fixing the underlying problem. ASIC’s own guidance treats reliance on director loans and personal funds as a warning sign of financial difficulty, not a solution.
What Does the Hub Contain?
The hub has five main parts.
1. The Small Business Director Roadmap
The roadmap is the centrepiece. You select the stage your company is at and the page sets out what you need to do and the obligations that apply. The five stages are Plan and prepare, Register and set up, Run your company, Comply with the law and Exit and close.
The roadmap is detailed. The “Run your company” stage alone covers annual reviews and solvency resolutions, renewing business names, recording decisions, keeping the members register, signing documents, cyber security, insurance, scams and third-party renewal notices, resolving disputes, and planning for illness or incapacity if you are a sole director.
2. Guides for three common situations
- Becoming a company director is for anyone thinking about registering a company or joining an existing one. It explains eligibility, including the director ID requirement, the personal risks, and the warning signs that should make you pause before agreeing to an appointment.
- Managing your director obligations explains the five duties that most affect the day-to-day running of a small company, with practical tips and a case study for each.
- Experiencing financial difficulty sets out what to do when the company is under pressure, the warning signs of insolvency, and the options that may be available.
3. Free online learning modules
ASIC has released two free modules, on becoming a company director and on managing your director obligations. Each includes knowledge checks and a scenario-based quiz and can be completed at any time. A third module on financial difficulty is marked as coming soon.
4. Short videos
Two short videos, on becoming a director and on keeping your business on track when facing financial difficulty, summarise the key messages in a few minutes each.
5. Learning and support resources
The learning and support resources page links to the ATO, the ACCC, the Fair Work Ombudsman, AFCA, the Australian Small Business and Family Enterprise Ombudsman, the Small Business Debt Helpline, Beyond Blue’s NewAccess for Small Business program and business.gov.au.
Five Messages Every Director Should Take From the Hub
The hub is long. If you read nothing else, these are the points ASIC returns to again and again.
1. There is no such thing as a director “in name only”
ASIC states plainly that there is no such thing as a silent director. If you agree to be a director of a relative’s or friend’s company as a favour, or “just for registration purposes”, you take on full legal responsibility for that company even if someone else makes every decision. ASIC lists the warning signs, which include being told the role is a formality, being asked to sign documents you do not understand, being denied access to company records, and being asked to give a personal guarantee. If you were appointed without your consent, ASIC explains how to correct the record.
2. You cannot delegate responsibility
You can delegate bookkeeping, tax and lodgements to an accountant, bookkeeper or registered agent. You cannot delegate the legal responsibility for knowing the company’s financial position and making sure it complies with the law. ASIC’s guidance repeats this at every stage of the roadmap.
3. The core duties apply to a one-person company
Even if you are the sole director and sole shareholder, the company is a separate legal entity and you owe it duties. ASIC summarises them as acting with care and diligence, acting in good faith and for a proper purpose, not misusing your position or information, keeping proper financial records, and preventing insolvent trading.
The case studies are worth reading. They involve a sole director drawing down a director loan account while suppliers go unpaid, a company paying above-market rent to the director’s spouse, and a director moving a profitable project into a new company he controls. In each case ASIC explains why the conduct may breach the director’s duties and what a liquidator could do about it.
4. Act early when the warning signs appear
ASIC’s list of warning signs includes overdue tax or superannuation, unpaid suppliers, maxed-out credit facilities, juggling which bills to pay first, dishonoured payments, and relying on director loans or customer deposits to keep operating.
If those signs are present, ASIC’s advice is to check whether the company can pay its debts as they fall due, get independent advice from an accountant, lawyer or registered liquidator, be cautious about new debts, talk to creditors and keep a record of your decisions. Options such as safe harbour and small business restructuring may only be available if you act early. ASIC also warns against “quick fixes” and against transferring assets to a new entity to avoid creditors, which may amount to illegal phoenix activity.
5. Stopping trading does not close a company
Until a company is formally deregistered or wound up, it continues to exist and its obligations continue. ASIC is clear that letting annual fees lapse so that ASIC deregisters the company is not a substitute for closing it properly, and may leave you exposed to unresolved debts and regulatory scrutiny. The Exit and close stage explains voluntary deregistration, winding up a solvent company and winding up an insolvent company.
What the Hub Cannot Do
ASIC is careful to describe the hub as general guidance, not legal advice. ASIC also states that it does not decide whether a company is the right structure for you, does not provide legal, tax, financial or business advice, does not manage a company for its directors, and does not resolve disputes between directors, shareholders or business owners.
Those are the situations in which tailored advice matters most. Common examples include the following.
- Choosing between a company, a trust or another structure, and preparing a constitution or shareholders agreement that reflects how the owners actually intend to work together.
- Being asked to become a director of, or give a personal guarantee for, someone else’s business.
- Disputes between co-directors or shareholders, particularly in family companies.
- Related-party arrangements such as leases, loans and management fees, which may need to be documented and justified.
- Early signs of financial difficulty, where the timing of advice may determine which options remain open.
- Succession and estate planning for sole director companies.
What Should You Do Now?
If you are already a director
- Spend an hour on the Managing your director obligations module.
- Check that your company’s details on ASIC’s register are correct and that your annual review and solvency resolution are up to date.
- Ask whether your financial records would let you answer, today, whether the company can pay its debts as they fall due.
- If you have any related-party arrangements, check that they are documented and defensible.
If you are thinking about becoming a director
- Read Becoming a company director and complete the module before you sign anything.
- Apply for your director ID through the Australian Business Registry Services before you are appointed.
- If someone else’s business is involved, get independent advice before you consent.
If your company is under financial pressure
- Do not wait for the annual review. Speak to an accountant, lawyer or registered liquidator now.
- The Small Business Debt Helpline on 1800 413 828 offers free, confidential financial counselling for small business owners.
Final Thoughts
The Small Business Director Essentials hub is the most accessible guidance ASIC has published for directors of small companies. It will not tell you what to do in your particular circumstances, and it is not a substitute for advice. It may, however, help you recognise a problem earlier, ask better questions of your advisers, and avoid the mistakes ASIC sees most often.
W & G Lawyers advises small company directors on company set-up, constitutions and shareholder agreements, director duties, disputes between owners, and the legal issues that arise when a company is in financial difficulty. If any of the matters in this article apply to you, please contact us.
Resources
This article provides general information only and does not constitute legal, financial or accounting advice. ASIC’s guidance may be updated after the date of publication. Directors should obtain professional advice regarding their particular circumstances.
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This article is general information only and does not constitute legal advice under Australian law. For advice specific to your situation, please contact W & G Lawyers. For further details, please click here to view our disclaimer.