If you are looking to set up a UK company, or open a UK office, you will need to ensure the directors of your company comply with their duties under the law. The law in this area is very comprehensive, with clear rules enshrined in legislation, supported by case law.
A UK director’s duties
When you set up a UK company, you will need to become at least reasonably familiar with the Companies Act 2006. Our specialist advisors can provide you with the information you require to ensure you stay on the right side of the law, so don’t worry about becoming a legal expert. However, when it comes to the duties of directors, there are some essential obligations you should be familiar with, and it is essential that you take legal advice to ensure any of the practices of your business are compliant with director’s duties in the UK.
Directors owe their duties to the company – not to the shareholders. In fact, one such duty outlined in the Companies Act is the ‘duty to promote the success of the company’. This means that directors should always act in the best interests of the longevity of the company, not for the benefit of majority shareholders. Other director’s duties include:
– To act within the powers of the company
– To exercise judgement independently
– To act with reasonable care, skill and diligence
– To avoid conflicts of interest
– Not to accept third party benefits offered because they are a director
– To declare any personal interests in any proposed activities of the company.
Each of these duties is described in more detail in the Companies Act, and clarified in a large body of case law. The law in this area is continually developing as a result of the common law system in the UK, which allows case law to impact how the law is interpreted. Only an expert in UK law will be able to advise you fully when you set up a company in the UK, as to how your current practices might be affected by director’s duties. Contact Goodwille today and let us help you, and your company, prosper in the UK