Checklist of Responsibilities of Company Directors

The business of the company is managed and controlled by the directors on behalf of the shareholders. The directors have to carry out their duties with the interests of the shareholders in the company in mind, as well as its creditors.

The directors have to take note of the following:

  • They must act in good faith and in the best interests of the company.

  • They must exercise their powers for proper purposes.

  • They must comply fully with the Companies Act and the constitution of the company (if it has one).

  • They must not recklessly trade.

  • They must not incur any obligations if they believe that the company will not be able to fulfil it.

  • They must not incur any debts or take on further credit if they believe the company is insolvent.

  • They must exercise all reasonable care, diligence and skill at all times.

  • If they don’t observe these duties they may be found personally liable for any costs or losses incurred.

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