In the UK, directors of a limited company have various duties and responsibilities outlined in the Companies Act 2006. These duties are designed to ensure that directors act in the best interests of the company and its shareholders.
Here are some key duties of directors under the Companies Act 2006:
- Duty to act within powers: Directors must exercise their powers in accordance with the company’s constitution and only for the purposes for which they are conferred.
- Duty to promote the success of the company: Directors must act in a way that they consider, in good faith, promotes the success of the company for the benefit of its shareholders as a whole. They should also consider the interests of other stakeholders, such as employees, suppliers, customers, and the wider community, as well as the long-term consequences of their decisions.
- Duty to exercise independent judgment: Directors must exercise independent judgment and make decisions based on their own evaluation of the relevant information.
- Duty to exercise reasonable care, skill, and diligence: Directors must exercise the care, skill, and diligence that would be expected of a reasonably diligent person with their knowledge and experience.
- Duty to avoid conflicts of interest: Directors must avoid situations where they have, or could have, a direct or indirect interest that conflicts or may conflict with the interests of the company. If such a conflict arises, directors must declare it and seek board approval.
- Duty not to accept benefits from third parties: Directors must not accept benefits from third parties that are conferred because of their position as a director or because of any action they took as a director, unless the acceptance of the benefit cannot reasonably be regarded as likely to give rise to a conflict of interest.
- Duty to declare interests in proposed transactions or arrangements: Directors must declare any direct or indirect interest they have in a proposed transaction or arrangement with the company.
- Duty to promote compliance with the law: Directors must ensure that the company complies with its legal obligations, including company law and other relevant laws and regulations.
These duties apply to all directors, regardless of their specific role or title within the company. It’s important to note that this is a general overview, and the Companies Act 2006 contains more detailed provisions regarding directors’ duties. Directors should familiarize themselves with the full text of the act and seek legal advice when necessary to ensure compliance.
If you have any questions, please ask us on 020 8087 2377 or drop us an email.
About us
LS Consultancy are experts in Marketing and Compliance, and work with a range of firms to assist with improving their advertising, documents, processes and systems to help mitigate risk.
We provide a cost-effective and timely bespoke copy advice and copy development services to make sure all your advertising and campaigns are compliant, clear and suitable for their purpose.
Our range of innovative solutions can be tailored to suit your unique requirements, no matter whether you’re currently working from home, or are continuing to go into the office. Our services can be deployed individually or combined to form a broader solution to release your energies and focus on your clients.
Contact us today for a chat or send us an email to find out how we can support you in meeting your current and future challenges with confidence.
Call Us Today on 020 8087 2377 or send us an email.
FREE downloadable content for Marketing, Compliance, Sales teams, small and medium-sized enterprises. Click here.
We’re looking for guest writers with business know-how and experience to create outstanding articles to feature on our website. Sound like you? Then find out more…
FOLLOW US
Connect with us via social media and drop us a message from there. We’d love to hear from you and discuss how we can help.
Facebook Instagram LinkedIn X (formally Twitter) YouTube
Contact us