The Roles and Responsibilities of a Director
Posted on 6th April 2021 at 10:49
A brief overview of the role and responsibilities of a director.
The director(s) are given charge of a company to manage it where they are entitled to make all the operational and strategic decisions whilst ensuring the company fulfils its statutory duties and obligations. The directors chair meetings of the company where management-related decisions are to be made. In short, they are elected by shareholders to take care of the daily business of the company.
Some of the directors responsibilities include:
Function within preassigned limits: They must ensure they work within the company rules and do not exceed them. They must work as per the constitutions of the company that includes agreements, resolutions and articles of association.
Work towards promoting company success: The primary and sole objective is to work for the company’s welfare. This includes but is not limited to making long-term decisions, promoting business interests, ensuring good business relationships, building the company reputation etc.
Impartial judgement: The company director must always make independent decisions and not be swayed by other board members at any time or any other external influencing factors.
Be diligent and skillful in management: The director must always exhibit due diligence, skill and knowledge expected of someone suited for the position held.
Ensure no conflicts of interest arise: The director must always be wary not to let any situation arise where it would lead to a conflict of interest to the company. Whether personal or any other kind it should impact the interests of the company in any manner. Some of the examples of conflict of interest include being on the board of directors of a competitor company, or a majority shareholder in another company that is in the same business secvtor, use insider information for personal gain etc.
In any situation of this kind, you need to be upfront with the board of directors and seek their approval in the related matter.
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