The Australian Securities and Investments Commission (ASIC) has launched a digital resource hub to help small business directors navigate their legal and corporate obligations.

The Small Business Director Essentials hub brings together practical guidance, learning modules and tools to help directors access information throughout the company lifecycle.

ASIC research identified several challenges directors face when meeting their obligations.

Nearly half of directors cited a lack of time and resources, as well as the volume of regulation, as barriers to staying across their responsibilities.

Hub supports directors across business lifecycle

ASIC Commissioner Kate O’Rourke said the new hub supports the regulator’s Small Business Strategy and regulatory simplification program.

The initiative aims to help directors better understand their responsibilities and access practical guidance in one place.

The platform features a director roadmap that outlines key obligations from planning and setting up a company through to operating, restructuring or closing a business.

It also includes guidance for specific situations, such as becoming a director, meeting ongoing obligations and responding to financial difficulty.

ASIC research highlights compliance challenges

ASIC developed the hub after researching how small business directors access regulatory information and the challenges they face.

A survey of 400 directors found that most directors felt confident about their responsibilities, but many were less certain about the consequences of failing to meet their obligations.

The research found that 49% of directors identified both a lack of time and resources to stay updated and too much regulation to manage as barriers to meeting their company director obligations.

The cost of seeking professional advice affected 44% of directors, while 41% cited the cost of maintaining compliance as a challenge.

Other barriers included having to use multiple sources to understand director obligations (35%) and having too much information to sort through (32%).

Meanwhile, 21% of directors said they faced no barriers in meeting their obligations.

Accountants remain key source of guidance

Accountants remained the most commonly used source of information or advice, with 87% of directors consulting an accountant about their obligations in the past 12 months.

Nearly half of directors (46%) used ASIC’s website for information or advice, while 22% said they had never accessed information or sought advice about their director obligations.

The new hub offers free online learning modules and centralises resources that directors previously accessed across multiple sources.

ASIC aims to make guidance easier to find as directors manage different stages of running a company.

O’Rourke said,

“By bringing practical guidance and learning resources together in one place, the hub makes it easier for directors to find the information they need, when they need it to meet their ASIC-related obligations.”

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