Director’s Responsibilities
A director must obey the law:
- Company Law requires the director to produce proper accounts and send various documents to Companies House
- Other laws includes areas such as health and safety, employment law and tax
- The director may be responsible for the actions of company employees
Directors have many business responsibilities for ensuring the success of their company in areas such as health and safety, employment law, and tax.
You run the risk of serious penalties if you fail to ensure that key information is sent to Companies House. You must also ensure that the company produces and submits annual accounts.
Until recently the role and responsibilities of company directors was defined by case law. The Companies Act 2006 confirms existing case law and requires company directors to act in a way which is most likely to promote the success of the business. The legislation requires that directors act in the interests of their company and not in the interests of any other parties (including shareholders). Even sole director/shareholder companies must consider the implications by not putting their own interests above those of the company
The act outlines the following:
Duty to act within their powers
As a company director, you must act only in accordance with the company’s constitution, and must only exercise your powers for the purposes for which they were conferred.
