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SFS News

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The Responsibilities of a Company Director

Company director

If you are planning to become a company director you should be aware of your responsibilities. Generally, company directors are responsible for the day to day running of the business but there are several legal responsibilities as well as the implications of breaching these duties that need to be taken into account. This guide is a general overview of your duties as a director.

Meet your filing dates - Company directors are responsible for ensuring all statutory filing is kept up to date and can be held legally accountable if the requirements are not satisfied. Failure to do so may lead to Companies House imposing late filing penalties and striking the company off the register.

Directors’ powers - The Articles of Association of a company will define the powers of a director. Consulting your articles of association will allow you to check any constraints on your authority and ensure you do not act outside of your predefined powers.

Company Director

Fiduciary responsibilities - A company director should make decisions based upon the best interests of the company for the benefit of the members over any personal interests. You should aim to make the company successful and sustainable avoiding any conflicts of interest.

Maintain accurate records - As a company director you should maintain accurate records. The accounts should provide ‘a true and fair’ view of the finances of the company. Any changes to the appointments or structure of the companies house should also be reported to Companies House any other relevant authority.

There are several responsibilities to consider as a company director and this list is not exhaustive. You should also have an understanding of employment law and the health and safety act. This guide is intended as a general overview only. Further guidance can be obtained directly from Companies House.