Directors' obligations

Directors' obligations
 

Being a company director has rarely been more demanding. Having to trade in a post-recession environment means that resources are very tight and the need to manage cash flow and minimize debtors is vital. Company directors also face an increasingly onerous regulatory environment where the consequences of failure go beyond a damaged personal reputation. Getting it wrong could mean the whole business is at risk, especially if you are an owner manager.

Company directors are required to act in the best interests of the company, promote its success and display a high standard of care and caution. Even the most well informed company director can misinterpret their duties and responsibilities and find themselves in contravention of their obligations.  Failing to comply with your duties and responsibilities as a director can be costly to the business.  In extreme circumstances failings on your part might result in creditors or shareholders taking action against you and you may be at personal financial risk if the claims are upheld. We help directors avoid such claims by making sense of the legislation surrounding their duties and responsibilities so that they know what action to take to reduce their exposure to risk.

Our dispute resolution team has many years of experience in assisting company directors who may face a claim or dispute relating to their duties and responsibilities, whatever the circumstances.  We have particular expertise in helping company directors minimise their risk where the company is being wound up but also in resolving disputes between directors where insolvency is not an issue. The team regularly advises on compliance with director's duties in the course of running a business, as well as exit strategies for individual directors.