Directors’ Responsibilities

22nd March 2024

What are directors’ responsibilities? As a director, you are legally responsible for running the company. This must be done in line with both the articles of association and Companies Act 2006.

 

A key role is to ensure that all statutory reporting requirements are met. This includes, but is not limited to:
  • Filing the annual accounts with Companies House by the deadline,
  • Filing the tax returns with HMRC by the deadline, and ensuring this tax liability is paid,
  • Keeping company records up to date and reporting any changes to the relevant body, and
  • Maintaining accurate accounting and company records.

 

Third parties may be hired to manage some of these items day-to-day (for example, an accountant) however, the ultimate legal responsibility of the company’s records, accounts and performance remains with the director.

 

Other duties of a director include:
  • Acting in the best interests of the company, in order to promote its success,
  • Using your own independent judgement, and not allowing others to control your powers,
  • Performing to the best of your ability, through exercising reasonable care, skill and diligence,
  • Making other directors aware of any instances where you may personally benefit,
  • Avoiding conflicts of interest, and
  • Applying confidentiality about the company’s affairs.

 

Failure to uphold these statutory duties can have serious consequences, such as fines, prosecution or disqualification from being a company director.

 

Get In Touch

For more information or advice, contact your local Whitings office today.

 

Disclaimer - All information in this post was correct at time of writing.
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