Director duties and responsibilities
- Know that the first duty of a director is to comply with the relevant company legislation in the jurisdiction.
- Understand that there is a general principle that directors owe their “fiduciary duties “to the company as a whole and not to any individual shareholder or group of shareholders.
- Know that the fiduciary duties that a director has to comply with are typically codified in company legislation or subsequent case law.
- Understand that directors may be accountable to the minority shareholders if they consider that the company is acting oppressively or are disregarding their interest as members.
- Understand that a director’s duties are to the company, but if the company becomes insolvent, their duties will be to the secure any unsecured creditors.
What is a company director?
Company directors provide oversight and direction of a company on behalf of its shareholders (members). There are many different types of directors, but most new board members are non-executive directors.
Who can become a company director?
Anyone over the age of 18
People who are not currently declared bankrupt
If you are not disqualified from acting as a director by a court
Not a restricted person (a person who has failed to satisfy a court that they acted honestly and responsibly concerning an insolvent company)
Tony McPoland worked for thirty-five years in the financial services industry and served at the board level for the last ten years. He has become a professional independent director and sits on the boards of eleven companies, including a regulated asset management company, several regulated funds, SMEs and non-profit organisations. He is chairman of five of these boards. He is a Fellow of Chartered Accountants Ireland. He also completed the Advanced Management Programme in INSEAD, and The Institute of Director’s Diploma and Certificate in Company Direction. He joined the board of LauraLynn in 2015.
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