It’s tough being a director (but that doesn’t mean you shouldn’t do it)
In a speech to the Australian Institute of Company Directors, ASIC Chair Joe Longo argued that while being a company director has become more demanding, it remains an important and worthwhile role in Australia’s economy. Directors today operate in a complex environment shaped by expanding regulation, technological change, cyber risks, climate disclosure requirements and emerging technologies such as artificial intelligence. Despite these pressures, Longo emphasised that the core duties of directors have not fundamentally changed: they must act with honesty, diligence and in the best interests of the company.
He noted that modern governance requires directors to stay curious about their businesses, ask challenging questions of management and continually educate themselves about risks and opportunities. Good governance depends on directors understanding how their organisations make money and the risks attached to those activities.
He also highlighted that regulators expect boards to remain the first line of defence against corporate misconduct and governance failures. Recent enforcement actions, including high-profile court cases, were presented as part of ASIC’s effort to clarify and reinforce standards of accountability for company leaders.
Longo acknowledged that regulatory complexity has increased significantly, with legislation and compliance obligations expanding over time, which means boards now spend much more time on governance and compliance matters. However, he argued that these expectations are necessary to protect investors, customers and the integrity of Australian markets.
Ultimately, Longo’s message was one of “tough love”: being a director is demanding, but it is not impossible. Directors who approach the role with integrity, diligence and curiosity can both meet their legal obligations and help their organisations thrive.
What this means for resident directors
Longo's point applies to every director, including a resident director appointed in a nominee capacity. Australian law gives every director the same core duties, whether they manage the business day to day or not. That's why we check every resident director engagement carefully, and why our directors pass credit and background checks before they are appointed.
