Monday, March 27, 2017
If you have set up a limited company, there are a number of duties you will have for e.g. legal and financial responsibilities, if you are a director of a company. The Companies Act of 2006 outlines some of the duties of a company director
Duties of limited company directors
Duty to act within your powers as a company director
Duty to promote the success of your company
Duty to exercise independent judgment
Duty to exercise reasonable care, skill and diligence
Duty to avoid conflicts of interest
Duty not to accept benefits from third parties
Duty to declare interest in proposed transaction or arrangement with the company
As a company director, you have several accounting-related obligations. Although you should employ a business accountant to perform all (or most) of these tasks, you are ultimately responsible to ensure that all tasks are carried out:
Keep good accounting records from which accounts can be prepared which give a true and fair representation of the financial position of the company.
You must submit accurate company accounts, and file them on time with Companies House.
You must submit your corporation tax return (Form CT600) to HMRC and pay any tax liabilities due.
You must deal with the correct payment of staff (and yourself) – including the deduction of income tax and national insurance contributions, where they apply.
You must trade solvently, ensuring that you are able to meet the financial liabilities of your business. Legal responsibilities of company directors
You are responsible for completing and filing a Confirmation Statement or annual statement every year as it was previously called.
To produce and maintain a register of Persons with Significant Control (also known as a “PSC register”). The PSC Register must be filed, as part of the Confirmation Statement, with Companies House annually.
To submit forms to Companies House to notify of any changes in the particulars of company director(s) or company secretary.
Notify Companies House if you change your registered company address.
You must always act in the interests of the company shareholders. This means that the directors cannot enrich themselves in a way that damages the company.
Labels: Director Responsibilities