Directors' responsibilities under the Companies Act 2006
The directors are those people who are authorized to conduct the company's business on it's behalf and in accordance with the Articles of Association and the law generally.
The Articles of Association confirm any company restrictions on the appointment of a director, however there are a number of people, by law, that cannot be appointed as a director:
- A person disqualified from being a director by any provision of the Companies Act 2006 or by a court order
- Undischarged bankrupts (unless authorized by the court)
- The auditor of the company
- A person suffering from a mental health disorder
- In Scotland, anyone under the age of 16
The responsibilities of the director include:
- Statutory duties which include ensuring that the necessary documents are completed and filed with Companies House by their due date
- A duty of care when carrying out your duties
- See that your company can pay it's debts
- Fiduciary duties which include acting for the company's benefit and in the best interests of the shareholders and the company's employees
The role of a director is an onerous one, whilst it is highly likely that you would engage the services of a professional firm to assist you, it is always the responsibility of the directors to ensure compliance is achieved.
The above is an extract from Professional Passport's published article.