As a director of a limited company, your role comes with significant responsibilities that go beyond simply running the business. You are legally accountable for ensuring the company operates efficiently, ethically, and in compliance with all relevant regulations. Here’s a breakdown of key duties:
- Act in the company’s best interests: Every decision you make must benefit the company and its shareholders, ensuring long-term sustainability and growth.
- Maintain accurate financial records: You are responsible for ensuring that proper accounting records are kept, annual accounts are prepared and filed on time, and that you meet all HMRC and Companies House deadlines.
- Comply with statutory duties: This includes filing the company’s annual confirmation statement, maintaining the company’s statutory registers, and adhering to the Companies Act 2006.
- Tax obligations: You must ensure the company stays on top of its tax liabilities, such as corporation tax, VAT, PAYE, and national insurance contributions, while keeping up to date with changes in tax law.
- Exercise reasonable care, skill, and diligence: Directors are expected to perform their duties with a level of care and skill that would be expected from someone in a similar position.
- Avoid conflicts of interest: Directors should always act in the company’s interests, not for personal gain, and must declare any potential conflicts of interest.
- Act within your powers: It is essential to follow the company’s constitution and the guidelines set out in the company’s articles of association.
Being a company director is a rewarding but challenging role, and ensuring you meet these responsibilities is key to both legal compliance and business success. Need support with these? We can help!