Director’s Duties – Key messages for directors (Part 6)

February 6, 2017

The use of a company to run your business can have many benefits but it is not a vehicle to hide behind to remove yourself from all risk and liability associated with the business. That’s why you must take your role and obligations seriously to make sure your risk is substantially reduced.

Over the last few weeks, we have provided a brief overview of just some of the duties you have as a director and how you can reduce your risk of becoming personally liable for the actions of the company.

Key messages to all directors are:

1. Keep fully informed about what the company is doing.
2. Be informed of proposed actions affecting business performance and capital assets.
3. Seek independent professional advice if you need more detail to make an informed decision.
4. Question managers and employees about the company’s performance.
5. Be proactive in directors’ meetings.
6. If you are not actively involved in the management of the company or its business, question whether you need to remain exposed to the potential liability as a director.

To help you implement the suggestions provided over the last few weeks here is a checklist you can print and keep in a handy location or, if you wish to be kind to the environment, save as your desktop background to review regularly to make sure you are on track for a happy life as a director.

Read Part 1 here

Read Part 5 here