As a director of a Limited company in the UK, there are certain legal responsibilities that you must comply with under the Companies Act 2006. Not every director has the same role, but every director must adhere to the 7 main statutory duties and the additional requirements to ensure your company is run appropriately and successfully. 
 
So, what are these duties? 
 
1. Act within their powers, as per the company’s constitution. 
 
This means you must only act in compliance with the company’s rules, which are set out and signed by the shareholders, director(s) and secretary. 
 
2. Promote the success of the company 
 
The director must act for the benefit of the shareholders, maintain a good reputation for the business and good relations with partners. This is also extends to looking after the wellbeing of employees and being aware of the long-term outcomes for any decisions made. 
 
3. To exercise independent judgement. 
 
You should not be influenced by anyone else and all decisions should be made independently. 
 
4. Exercise reasonable care, skill & diligence. 
 
To act as a reasonable person would be expected to act and to perform to a high standard according to your level of expertise/knowledge. 
 
5. Avoid conflicts of interest. 
 
Always maintain the integrity of the business and avoid possible situations which may pose a potential conflict and loyalty split. This responsibility continues long after you cease being a director as you must not use any information received through your role as director for personal gain. 
 
6. Do not accept any third-party benefits. 
 
This means no perks or gifts, which ultimately may be seen as a conflict of interest, unless accepting these benefits are deemed as reasonable corporate hospitality. 
 
7. Declare interests in existing or proposed transactions or arrangements. 
 
You must inform other directors and shareholders if there is a possibility that you may gain personally from any company transaction. 
 
In addition, a director is responsible for the filing of annual accounts and a confirmation statement, tax affairs, maintaining books, notifying companies house of any key changes to the business, keeping up to date with UK company law. 
 
For further support and information, contact our team or request a free consultation. 
 
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