Six Company Director Duties

As the head decision-maker of a business, the company director has a very clearly defined role. However, they have a lot of other duties and specific responsibilities that you might not have thought about. We take a brief look at six of the most overlooked, but important, duties of a company director.

Carrying out due diligence

The buck stops with the company director, which means that it’s on them to carry out, or at least ensure there are systems in place, for due diligence. This might include, for example, background checks on new staff members.

Avoiding and/or declaring conflicts of interest

The revelation of a conflict of interest can be at best, embarrassing and at worst, criminal . It is the duty of the company director to avoid conflicts of interest where possible and to declare any that couldn’t be avoided.

Statutory filing and reporting

It’s also the duty of the company director to make sure all statutory filing and reporting is up to date. Depending on the type of company and country of registration, this might include tax reports, accounts, VAT reports, and annual statements.

Compliance with regulations

Again, the responsibility lies with the company director when it comes to complying with laws, regulations, and legislation. It’s not just a matter of compliance at the moment either – the company director also needs to be aware of any upcoming changes to relevant regulations.

Financial burden

Even with limited companies, it is sometimes the duty of the company director to carry the burden of company debt. This is sometimes ensured with a directors personal guarantee. Contact legal experts such as https://www.parachutelaw.co.uk/director-guarantee for more information on this type of guarantee.

Blowing the company trumpet

The company director gets the most opportunities to be heard, so they’ve a duty to celebrate the company’s successes whenever they can. Whether it’s a quote for an article, a speech at an event, or even a report in the company newsletter, the company director should never neglect this important duty.

From regulations to reporting, these are some of the most important duties and responsibilities of company directors.