Directors'responsibilities

The duties of company directors have, until recently, been defined by case law. Under the Companies Act 2006 they have now been set out in a single statement.

Company Directors are responsible for the management of their companies. They must act in a way most likely to promote the success of the business and benefit its shareholders. They also have responsibilities to the company's employees, its trading partners, and the state. As a director, you need wide powers to help you promote the company. However, you face serious penalties if you abuse those powers, or use them irresponsibly.

This briefing covers:

• Appointing company directors.
• Directors' powers.
• Directors' responsibilities.
• Penalties for misuse of position.
• How to protect yourself.