The Duties of a Limited Company Director – Statutory duties

There are numerous statutory duties that apply to directors, many linked to defaults by the company.

If a private company offers shares to the public, the company ’and any officer of the company in default‘, are guilty.

However, there are some duties, whose breach is a criminal offence, that apply only to directors. One of the most important is the duty not to deal in securities when in possession of unpublished price sensitive information (‘insider dealing’).

Some legislative provisions impose civil liability upon a director. For example, a director who signs a cheque that does not have the company’s ’name mentioned in legible characters’ is personally liable on the cheque.

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