Responsibilities as a Director of a UK company
If you’re operating in the UK, your company Director will have a number of duties – as well as legal and financial responsibilities. You may wish to appoint a Company Secretary to support you with managing these obligations. Assuming these duties are the same as in the countries where you already operate would be a mistake. Let’s go through the essential things to know now.
Common law duties
The Companies Act 2006 outlines the Common Law duties of a Director, which are defined under ‘Good Faith’ and ‘Care and Skill’. These duties are based around acting in the interests of your company and exercising reasonable care and skill in carrying out your duties.
The Companies Act 2006 also outlines the statutory duties of a company Director which are to:
- act within the company’s powers
- promote the success of the company
- exercise independent judgment
- exercise reasonable care, skill and diligence
- avoid conflicts of interest
- not to accept benefits from third parties
- declare interest in proposed transaction or arrangement with the company
Financial and legal responsibilities
Your company Director will also have a few financial responsibilities. some of which include submitting accurate accounts to Companies House, paying staff correctly and submitting a company tax return to HMRC. There are also legal responsibilities as a Director such as filing Confirmation Statements and notifying Companies House of any changes in directorship or registered office.
Breaching these duties can result in fines or in the worst case, imprisonment and disqualification of future Directorship. The good news is that Goodwille can look after these financial tasks and legal responsibilities on your behalf through the provision of a Company Secretary. So don’t be complacent and risk not complying with your obligations here in the UK – get in touch and we can fill you in on all the finer details.