Directors’ duties/liabilities

A director has extensive powers to bind the company but may be personally liable for a breach of duty. The duties embrace: compliance with the Companies Acts and the Articles of Association; exercise of reasonable care and skill; and a fiduciary duty to act in good faith. Directors principally owe their duties to the company but may also owe duties to creditors and the company’s employees in general. Certain sections of the Companies Acts and other legislation (e.g. Health and Safety) expose the director to criminal liability. Directors may also attract personal liability for fraudulent trading or wrongful trading or exceeding their authority. See DIRECTORS’ AND OFFICERS’ LIABILITY INSURANCE.

Leave a Reply

Your email address will not be published. Required fields are marked *