Director information hub: knowing the rules that apply to your company
As a director, you’re responsible for making sure that you and your company comply with all relevant laws, regulations and rules.
Understanding your responsibilities
As a director you must make sure that you, your company and others (such as employees, contractors or customers) follow all laws, regulations and other rules that apply to your company.
All companies have to meet some legal requirements, like keeping accounting records and managing tax. Other rules apply only to certain types of businesses, but it’s up to you to know which ones apply to your company, and to make sure they’re followed. You can ask other people to handle day‑to‑day tasks, but directors are the ones that are legally responsible.
Example: A company that operates goods vehicles over a certain weight must have a vehicle operator’s licence. It must also make sure that any drivers the company employs have the correct licence, training and comply with relevant health and safety rules. In addition, all vehicles must be correctly taxed, maintained and insured.
Keeping up to date
Because laws and regulations change over time, it’s a good idea to sign up for update services or email alerts that help you stay informed about anything that could affect your company or your legal duties.
What happens if you do not follow the rules
Failing to meet your obligations can lead to serious consequences. These may include criminal charges, civil penalties or action against you or the company by regulators. Find out more about possible consequences.
If you think the company is not following a rule, take action as soon as possible. Get professional advice if you need to.
Every company is different
There isn’t a single source that lists every rule, regulation or law you or your company have to follow. You have to do your own research to find out what you need to know. For example, you could search the Internet for information about your industry or get advice from someone with specialist knowledge.
Here are some examples of rules you might find useful:
- Find business regulations and guidance
- Data protection - protecting everybody’s personal information
- Business premises and business rates.
- Detailed information about employing somebody
- Health and safety at work
- Check if the company needs a licence for its business activities
- Obligations if your company is a charity
- Offering credit to consumers
- Consumer protection guidance for businesses
- Writing fair contracts
- Product safety
- Disposing of business or commercial waste
- Who needs to register for money laundering supervision
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Updates to this page
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Added a new link to https://www.gov.uk/guidance/director-information-hub-possible-consequences-of-not-following-the-rules
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First published.