Directors’ Responsibilities

The duties of a company director are set out in the Companies Act 2006 and the Government has produced guidance setting these out in simple terms, which is produced below:

Guidance for company directors on their duties–

1. Act in the company’s best interests, taking everything you think relevant into account

2. Obey the company’s constitution and decisions taken under it.

3. Be honest, and remember that the company’s property belongs to it and not to you or to its shareholders

4. Be diligent, careful and well informed about the company’s affairs. If you have any special skills or experience, use them

5. Make sure the company keeps records of your decisions

6. Remember that you remain responsible for the work you give to others.

7. Avoid situations where your interests conflict with those of the company. When in doubt disclose potential conflicts quickly

8. Seek external advice where necessary, particularly if the company is in financial difficulty

Source: Companies Act 2006: duties of company directors (http://www.berr.gov.uk/whatwedo/businesslaw/co-act-2006/index.html)