What is a Shadow or De Facto Director and What are the Associated Risks? A shadow or de facto director is somebody whom the law deems to be a director due to the authority or control they exercise over a company. Shadow or de factor director is therefore someone who acts and exerts similar powers as a director but who has not been formally appointed and registered as the company director. We know the responsibilities and duties of appointed company directors, discussed at length in our previous article “Directors Duties in Australia”. However, an individual who has not been validly appointed as a director of a company may nonetheless be considered a director of that company if they have authority to the extent that the directors are regularly acting in accordance with the individual’s directions or requests. This article explains the circumstances by which the law may consider...