Directors of companies are subject to various legal duties including a general duty to promote the success of the company for the benefit of the members in relation to which they are required to take into account a number of factors. They have duties to declare interests and avoid conflicts of interests. They are also directors' duties relating to property, opportunities and information of the Company.
The duties arise under statute, in particular the Companies Act 2006, and under the common law and may also be affected by the articles of association of the Company. In the case of a company in financial difficulty, very important duties arise also under the Insolvency Act 1986.
Directors are responsible to the shareholders of the Company and may on occasion need to obtain shareholder approval for proposed actions. They are responsible generally also for ensuring the Company’s compliance with the law, for example, when declaring or paying dividends or ensuring the health and safety of employees or of the Company’s products or services.
The consequences of breaching directors' duties or responsibilities can be very serious including personal and criminal liability, disqualification and/or fines.
Our corporate solicitors have extensive experience of advising directors on their duties and responsibilities and on the processes and documentation required to ensure and demonstrate compliance.
If you need help or legal advice in connection with understanding and complying with your duties and responsibilities as a company director, please contact our corporate solicitors on 08081668827.
Disclaimer:
Information on this website is provided for general information purposes only. It is not intended to constitute and should not be relied upon as legal advice. There are a number of factors and circumstances which may be relevant to legal advice. The law may also have changed before we are able to update the information on this website. If legal advice is required, please contact us on 08081668827.
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