You must ensure that your business runs smoothly and in compliance with the law when you manage it. Have you ever wondered what your responsibilities are as a director of a company? Are you sure that you have met your obligations under the Companies Act? Read on if your answer is "no", "not sure", or "maybe",
General duties require that directors act in the best interests of the company, not in the interests of shareholders. Are you unsure what these duties mean? Professional corporate secretarial services may be more beneficial. Secretarial services of W.L.P Group can help you decide how to respond to conflicting interests.
The company is the priority. This principle is applicable to 'one-man' companies as well. A director/single shareholder may not place his/her interests above those of the company.
Obligation to act within the limits of the company's power
Each company will have its own constitution, which is in addition to the duties and responsibilities that the Act imposes on directors.
*It is your responsibility to follow the company's constitution. Directors must adhere to any restrictions.
*The powers delegated to directors by the shareholders must be used for the benefit of the company.
Promotion of the company's success
The Act does not define success as it may differ from one company to the next. The principle behind the Act is that directors have a legal obligation to act in a manner that is most likely, in their opinion, to bring success to the company. Most companies will define success as sustainable profitability.