Roles and Responsibilities of Directors in a Corporation



Roles and Responsibilities of Directors in a Corporation

Introduction

Directors of a corporation have to perform various duties and responsibilities based on State laws and principles defined by corporations. It is very essential for the directors to perform their roles and responsibilities according to the corporate law and corporate governance. There are some primary roles and responsibilities of the boards of directors in order to manage corporation such as managing staff, planning and implementing policies and taking major decisions of the corporation. Directors are supposed to exercise their power for the progress of corporation with loyalty, honesty and good faith.

Statutory Responsibilities

Directors of a company are generally responsible for their role to control the rules and regulations of a corporation according to the statutory law. Therefore, it is very essential for the directors to implement policies based on these statutory laws and regulations in the society. It is also very essential for these directors to ensure that the staff must follow these rules and regulations. According to the Companies Act 2006 there are some primary roles and duties of a director such as

A director is required to act according to the constitution and regulation of the company.

A director can use only powers, which are confined to him.

Directors can also make judgment

It is basic responsibility of directors to avoid any conflict

Directors cannot accept benefits from the third party

It is also responsibility of directors to declare any interest in transaction or arrangement

Directors of a corporation are strictly required to avoid any misconduct and they are required to follow all the laws and statutory acts, which define their liabilities such as Company Directors' Disqualification Act 1986, Insolvency Act 1986 Wrongful Trading, Health and Safety at Work etc Act 1974, and Corporate Manslaughter and Corporate Homicide ...