What Are My Liabilities As A Director?

As a director of a limited company, the law says you must:

• Try to make the company a success, using your skills, experience and judgment
• Follow the company’s rules, shown in its articles of association
• Make decisions for the benefit of the company, not yourself
• Tell other shareholders if you might personally benefit from a transaction the company enters into
• Keep company records and report changes to the Companies House as well as HM Revenue & Customs
• Make sure the company’s accounts are a ‘true and fair view’ of the business’ finances

You can ask other people to manage some of these things day-to-day. For example, an accountant can manage your accounts for you – however, please be aware that you as the director / business owner are still legally responsible for them.

You may be personally liable for your company’s business liabilities and be fined, prosecuted or disqualified as a company director if you don’t follow the rules. Contact your professional adviser or trade association to find out more.