Being a company director brings great responsibility along with the opportunity to develop and grow a successful business. It is important to understand the individual liabilities that arise.

Many of the key duties of the company director are codified in the Companies Act 2006, which states that directors must:

• Promote the success of the company for the benefit of its shareholders, while considering the impact of decisions on employees, suppliers, customers and the environment.
• Exercise independent judgement when making decisions.
• Exercise reasonable care, skill and diligence.
• Appropriately manage conflicts of interest.

Directors are also responsible for keeping proper records, and there are restrictions on certain transactions, for example, securing a loan from the company. 

A director could be held liable for a breach of these duties, either along with their company or as an individual.

At Nicholls & Nicholls, we understand the importance of protecting your business and can offer advice and assistance in relation to director liability and any potential breaches. Contact us for a bespoke quote and to discuss how we may be able to assist you and your business.

Please see our additional advice pages for more information:

• Director Disqualification
• Bribery and Corruption
• Trading Standards
• Health and Safety
• Data Protection
• Market Abuse and Insider Dealing