Directors’ Duties – An Introduction

Whether you are a company director at present, or are thinking of becoming one, it is important to be aware of your duties and obligations

There are a number of duties and obligations on company directors which they need to be aware of, including statutory duties and common law duties.  Prior to the introduction of the statutory duties in the Companies Act 2006 (“CA 2006”), directors’ duties were based in common law, meaning they were evolved and developed by the courts through case law.

Common Law Duties

The common law duties imposed on all directors generally comprised fiduciary duties and a duty to exercise care and skill.

Statutory Duties

The statutory duties introduced by the CA 2006 were seen to be a significant reform of the law, intended to make it clearer and more accessible for directors.  However, these duties are not a complete list of all directors’ duties and it is necessary to consider alongside them the uncodified common law duties.

Overview

The upcoming series of blogs will consider directors’ duties from common law to duties under legislation and other regulations, to highlight why it is so important that directors are aware and understand the obligations which they need to comply with.

Look out for the next blog in the series, which will provide an overview of the former common law regime

If you would like further information regarding the topics discussed in this blog, please contact:

Calum Crighton:  ccrighton@gilsongray.co.uk / 01224 011687

Kim Anderson: kim.anderson@gilsongray.co.uk / 01224 011694