CORPORATE LAW

Directors Duties

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Duties of Directors in Company Law

If you need legal guidance about Director’s Duties and how they work, get in touch with our team today on 0330 912 8338 for a no-obligation conversation.

Director’s Duties are a universal set of responsibilities that outline the legal responsibilities of a director of a company.

They are an important element for a business to understand, allowing the company to set out the responsibilities of the director and letting the director know what is expected of them in their role.

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Directors Duties FAQs

Are all Director’s Duties the same?

Yes, in the UK all Directors Duties are the same in the sense that they set out the basic principles of being a director. They aren’t an employment contract in the sense that you can set out whatever you like as the responsibilities of the job role, but instead a basic measure to protect the business should the direct neglect their duties. A director would still have an employment contract where you can outline specific responsibilities unique to your business.

Are Director’s Duties an employment contract?

No, they aren’t. Even with Director’s duties in place, you would still need an employment contract for a director to outline specific responsibilities and benefits of the job.

What are the Director’s Duties?

The Director’s Duties are:
• Duty to act within powers
• Duty to promote the success of the company
• Duty to exercise independent judgment
• Duty to exercise reasonable care, skill, and diligence
• Duty to avoid conflicts of interest
• Duty not to accept benefits from third parties
• Duty to declare an interest in a proposed transaction or arrangement
• Duty to exercise reasonable care, skill, and diligence in relation to accounts

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