As a director you are legally responsible for the running of your company and making sure information is sent to Companies House and HMRC correctly and on time.
Companies House requires the following to be reported to them:
- Annual Accounts
- Changes to company officers or personal details
- Changes to the registered office
- Allotment of shares and changes to share holders
- Registration of charges
- Changes to the people with significant control
Your accountant can manage the filing of the things above however you are still the one who is legally responsible for the company’s records, accounts and performance.
The general duties of a director under the Companies House Act 2006 still apply even if you are:
Not active in your role as director
- Someone else tells you what to do
- Acting as a director but have not been formally appointed
- Controlling a board of directors without being on it
You also must follow the company’s constitution and its articles of association. These are written rules about running the company, agreed by the members, directors and the company secretary.
With regards to promoting the success of the business, you must act in the company’s best interests and promote its success. You must consider the:
Consequences of decisions, including the long term
- Interests of its employees
- Need to support business relationships with suppliers, customers and others
- Impact of its operations on the community and environment
- Company’s reputation for high standards of business conduct
- Need to act fairly to all members of the company
If the company becomes insolvent, your responsibilities as director will apply towards the creditors, instead of the company. A creditor is anyone owed money by the company.
Other duties include to:
Not misuse the company’s property
- Apply confidentiality about the company’s affairs
If you have just became a director and would like to talk to someone about your duties and how to be the right director from the very start call us on 01530 447999 to see how we can help you in the running of your business.