Obligations as a company director
Responsibilities of directors
Directors are responsible for managing the company’s day-to-day business. In doing so, directors owe duties to the company, to its shareholders, and to others dealing with the company.
Directors must act honestly in what they believe to be the best interests of the company and with such care as may reasonably be expected of them in all the circumstances.
Directors must not carry on the business in a manner likely to create a substantial risk of serious loss to the company’s creditors (so-called “reckless trading”).
The solvency test
The Companies Act requires directors to abide by a two-step test at all times:
- The company must own more assets than liabilities
- The company must be able to pay all its accounts as they fall due.
- This information is provided by
Obligations as a director | Companies Office The Official Site
