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What is a company director?
Updated over 6 years ago

A company director is a member of a board of a company or an alternate director of a company.

At it's simplest level, directors manage the day-to-day activities, finances and are legally responsible for the business.

Below is a more detailed explanation of a company directors roles & responsibility.

Role of a company director

  • Company directors appoint and supervise management to ensure the smooth running of the company.

  • Although duties can be delegated to management, directors must monitor management’s performance. Directors hold overall responsibility over management.

  • Shareholders have the power to re-appoint directors or not to re-appoint them.

Duties of a company director

Company directors must:

  • Exercise with care and skill that would be expected of a person in that position

  • Not use corporate property info or opportunities for personal gain

  • Exercise independent judgement in decision making

  • Exercise unrestrained discretion

  • Exercise powers for their proper purpose for which they were conferred

  • Act only under available powers

  • Act solely in the interest of the company and in good faith

  • Prevent any conflict of interest

Company directors must not:

  • knowingly cause harm to the company or a subsidiary of the company

  • use their powers to gain an unfair advantage for himself or any person other to the company  or a subsidiary of the company

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