Director’s responsibilities
Whilst it might feel good to be the director of your own company you have several responsibilities as directors under the Companies Act 2006:
- To act within their powers (in the articles of association etc)
- To promote the success of the company for the benefit of its members as a whole ie not benefitting one member above the company eg by allowing one director/shareholder to take out more dividends/loans that the company can afford
- To exercise independent judgement – you can take advice but must decide for yourself
- To exercise reasonable care, skill and diligence eg using a chartered accountant or professional bookkeeper if you don’t have those skills in house
- To avoid conflict of interest
- Not to accept benefits from third parties
- To declare interests in transactions