The office of director carries with it a number of duties and responsibilities:
1) General fiduciary duties
- to act bona fide in the interests of the company
- the act in good faith
- to avoid conflicts of interest i.e. personal and business interests
- not to make any personal gain/secret profits
2) Common law duties of skill and care
As a director you must carry out your duties with such skill and care as may be reasonably expected from a person in that position or from a person with specific knowledge and experience.
When a company is insolvent the directors fiduciary duties and common law duties are subject to an overriding duty to the interests of the company’s creditors.
Breach of duty can result in an action by the company against the director for damages to compensate the company for the loss that has been suffered.
For more information or to arrange your initial FREE consultation please telephone Mark Botwood on (01902) 393007.