Company+directors'+responsibilities

The company's Memorandum and Articles of Association limit what directors can do. Although they usually give you a great deal of freedom, you must check. For example, you might: The Companies Act 2006 introduces separate and more straightforward model Articles of Association for private companies. The details of the new model Articles of Association have not yet been confirmed, but the provision is expected to be in force by October 2009. The role of the company director has until recently been defined by case law. The Companies Act 2006 confirms previous case law and requires company directors to act in a way most likely to promote the success of the business. You must exercise a degree of **skill and care**. You must: You must act in **good faith** in the interests of the company as a whole. This includes: You must obey the **law**: If in doubt, take professional advice. Acting improperly can lead to fines, disqualification from being a director, personal liability for the company's debts or a criminal conviction. Any one, including a director, who signs "any bill of exchange, promissory note, endorsement, cheque or order for money or goods in which the company's name" is not "mentioned in legible characters" will be personally liable for the amount involved if the company does not pay ([|Companies Act 1985, s.349(4)]).
 * Company directors' responsibilities **
 * Directors' powers and financial liabilities **
 * be restricted by the company's objectives to running a particular type of business - for instance, an IT consultancy
 * not be allowed to borrow money
 * show the skill expected of a person with your knowledge and experience
 * act as a reasonable person would do looking after their own business
 * treating all shareholders equally
 * avoiding conflicts of interest
 * declaring any conflicts of interest
 * not making personal profits at the company's expense
 * not accepting benefits from third parties
 * company law requires you to produce proper accounts and send various documents to Companies House
 * other laws include areas such as health and safety, employment law and tax
 * you may be responsible for the actions of company employees