Duties of a Company Director
- Price: £3.60
- Published: June 2016
- Type: Business Information Factsheet
- Format: PDF
In order for a limited company to operate, its shareholders delegate the day-to-day management responsibility to a board of directors who then have the power to take business decisions and enter into contracts on the company's behalf.
To protect shareholders, directors are subject to various restrictions and controls imposed by legislation and the company's articles of association. These include general and administrative duties imposed by Part 10 of the Companies Act 2006 ('the Companies Act'). See BIF 459, An Introduction to the Companies Act 2006, for more information.
This factsheet looks at the role of a company director in private limited companies and considers their basic duties, responsibilities and potential liabilities. It also outlines some of the implications of the Companies Act for company directors.
As this is a complex area of legislation, company directors should seek professional advice where necessary to ensure that they comply with all aspects of the law.