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advantages of shareholder over director in new company
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i know the general principles of acting as a director in a company, and am familiar with the rights of shareholders. in the last ten years or so, i believe australia has introduced legislation that strongly punishes those directors who do not act in a professional or prudent manner. while i will of course attempt to fulfill the duties required - i am new to conducting business at this level, and am concerned about mistakenly breaching some unknown rule/law and being subject to repercussions that i just don't know about. as you have already stated, the key to being director in a company is the additional responsibility. legally you can be held in breach. at the same time you will be able to influence your decision much better if you a director and thus safeguard your interest. if you are only a shareholder, you cannot be held responsible for decision by company, individual malpractice may still be applicable, but this is less of a risk. however over a period of time, the board can take certain decision that may marginalize your holding in the company.
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