Director information hub: General duties
As a director, there are general duties you are expected to perform.
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Limited company directors complete several tasks each year to comply with financial and regulatory rules.
There are also many general duties you are expected to fulfil as a director.
General director duties
The full list of duties is contained in the Companies Act 2006.
Some of the key duties are:
Company’s constitution
You must follow the written constitution of your company. This is created when you set up your company.
Promote the success of the company
This means considering the impact your company has on others, the environment, any employees and colleagues.
It also requires you to act in the interest of creditors if you are insolvent.
Independent judgement
Take advice, but always make decisions for yourself.
Exercise reasonable care, skill and diligence
Use the skills you have in the best way possible.
Avoid conflicts of interest
Do not take advantage of your position as a director to gain unfair advantages or create conflicts in business or other relationships.
Third-party benefits
Generally, you shouldn’t accept benefits from third parties that may cause conflicts of interest.
Interests in a transaction
You must tell other directors if you personally benefit from a company transaction.
Other duties
If you are not sure what other duties directors have, you should speak to a professional adviser such as your accountant or a trade body.