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