1. Directors' responsibilities

As a director of a limited company, the law says you must:

  • try to make the company a success, using your skills, experience and judgment
  • follow the company’s rules, shown in its articles of association
  • make decisions for the benefit of the company, not yourself
  • tell other shareholders if you might personally benefit from a transaction the company makes
  • keep company records and report changes to Companies House and HM Revenue & Customs
  • make sure the company’s accounts are a ‘true and fair view’ of the business’ finances
  • register for Self Assessment and send a personal Self Assessment tax return every year

You can ask other people to manage some of these things day-to-day. For example, an accountant can manage your accounts for you - but you’re still legally responsible for them.

You may be personally liable for your company’s business liabilities and be fined, prosecuted or disqualified as a company director if you don’t follow the rules. Contact your professional adviser or trade association to find out more.

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