Directors’ Duties

Directors’ Duties

Directors are, by law, required to ensure that they adhere to a number of strict legal obligations. These are designed to ensure that the interests of a business are protected.

The seven duties included in the Companies Act 2006 are:

  1. To act in accordance with the company’s constitution
  2. To promote the success of the company
  3. To exercise independent judgment
  4. To exercise reasonable care, skill and diligence
  5. To avoid conflicts of interest
  6. To not accept benefits from third parties
  7. To declare an interest in a proposed transaction or arrangement.

As a director you must ensure that you comply with these conditions, if you fail to do and a loss results so could be held personally liable – so it is crucial that you understand the effect of the obligations and restrictions above.

Directors will often have employment rights even where there is no directors service agreement in place.

Expert Advice

Our London employment solicitors can advise on:

  • Directors duties
  • Directors’ service agreements
  • Restrictive covenants
  • Unfair dismissal
  • Grievances
  • Misconduct allegations
  • Disciplinary proceedings
  • Discrimination
  • Whistleblowing

If you need advice or have any questions in relation to the above, please contact our London employment lawyers on 020 7580 5721.


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