Company Directors; Navigating their Duties in the UK

The Directors of a company are the backbone of a company, they ensure the survival and successful existence of the company. The law charges directors in the UK with general duties and responsibilities.

The directors are generally responsible for the management of the company and decide on operational and strategic decisions involving the company. The role of a director is to be part of the company’s board meetings to help them reach crucial decisions and ensure that the interest of the company is protected and its purpose met.

The Companies Act 2006 provides the duties of a director and they are explained below;

Foster the Success of the Company

A director is wanted to act in good faith in order to promote the ultimate success of the company. The law stipulates what promoting the success of a company is and that a director must pay attention to;

Always act fairly between members of the company

Put into consideration the interest of the company’s employees when making decisions

The force of the company’s operations on the environment and community

Ensure the company’s relationship with its suppliers, customers, partners, and investors relationship is maintained and improved

The want to constantly place and maintain a high standard for the company

There are other factors that a director should put into consideration in order to ensure the success of a company.

Operate Within Powers

Every company has its constitution which is mostly in the form of a Memorandum and articles of association of the company. The director is expected to at all times act within the provisions of the company’s constitution. It is tantamount for the director to familiarize himself with these requisite company documents.

Not Taking Gifts from Third Parties

Benefits may come from third parties which could be the company’s customers or partners. A director is encouraged not to receive or accept gifts from third parties so it does not give rise to a conflict of interest. However, a director can receive gifts if he or she can prove that accepting such gifts does not give rise to a conflict of interest.

Practice Reasonable Care, Skill, and Diligence

As a company director, much is expected in the management of the company’s day-to-day affairs, so it is expected that the director is expected to act reasonably as someone in his or her position will normally act.

Exercise Independent Judgement

Even though the company has documents regulating how the company should be handled, the director is expected to make their own personal judgment they feel can positively impact the success of the company.

Penalty For Breach of Duties

The Law has authorized a company with the power to claim potential remedies from a director who is found wanting for the breach of his or her expected duties. The remedies available to a company include but are not limited to damages, injunction, or compensation. For instance, a director may be made to pay a fine if he or she refused to disclose his or her interest in an existing transaction or arrangement with the company.


There is a plethora of duties that a director has as provided by the Law. The duties provided in this post are not exhaustive but rather these are some of the top duties a director owes for the growth and success of a company.

If you need more information about the directors and their duties, you can reach out to us for a free consultation.

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