Being the director of a company carries much responsibility, and there are duties and liabilities both legal and non-legal in nature that directors need to consider when in this position. Failing to do so can open the director to liability for any losses the business sustains, and certain breaches may even be considered a criminal offence. This applies even to those who may have adopted their role as director merely for ceremonial purposes.
Statutory law on companies does state what a director’s duties should be, but this is by no means a one-size-fits-all solution.
Director’s Service Agreement
Many companies adopt a directors’ service agreement to further stipulate what a director is required to do and what they must refrain from. The precise details of this agreement will differ from business to business, and it’s crucial for directors to be familiar with what is required of them.
Being unaware or only partially informed about your duties as a director is a dangerous position to be in, and it’s your responsibility to rectify this as a priority.
At Robertsons Solicitors we’re here to ensure directors understand their role and what their business expects of them. We can confidently advise directors of their duties and liabilities as well as give information to any party concerned that a director they work with may be failing in their responsibilities or overstepping the mark.
Having a director that comprehends their duties is in the interests of everybody in the company, and our expert staff are on hand to ensure directors receive the advice they need.
Holding years of experience in company law, we will guide you to a full understanding of what your role as director entails.