Responsibilities of Company Directors in LLP

The Company Director is a high dignitary officer who is appointed to manage and direct the day-to-day business activities and also keep a note of finances in a Company. He is the one who is responsible for statutory filing obligations. The company Director is expected to abide by the law and be honest to the company, make important decisions and take the company at heights

According to the Companies Act 2006, the duties and responsibilities of the Directors are written in the Article of Association that is filed during the company registration. The duties consist of the following principles:

  • To act within the powers given to them in the articles of association.
  • Promoting the success of business.
  • Exercising independent judgment in all decision-making.
  • Using reasonable care, skill , honesty and diligence at all times.
  • Avoiding or declaring any conflict of interest.
  • Avoiding the acceptance of benefits from third parties.
  • Declaring an interest in a proposed transaction.

According to the Companies Act there are certain duties to be done by the Directors, these general management duties may include:

  • Important decision making that will in a way benefit the company and its owners, and also consulting the creditors/shareholders before taking any decision.
  • Keeping a high check on the maintenance of the Company details with the Company House and the MCA/HMRC.
  • It is very important to carry out proper financing records during service period.
  • It is also the duty of the Director to monitor/supervise the financial position of the company.
  • Annual accounts, Annual returns, and Company Tax Returns are to be readily filled within the given deadlines by the Directors.
  • It is also the responsibility of the Director to pay the corporation tax and any other tax liabilities by the given deadlines.
  • Organizing the General Meetings and Board Meetings.
  • Filing copies of resolutions with Companies House.
  • Appointment of important professionals are also the duty of the Director which includes appointing solicitors, accountants and auditors, if required.
  • All the members(shareholders) must be provided with the Annual Account.
  • Directors are required to Issue and transfer shares to the creditors.
  • Complying with employment law if the company has employees.
  • Appointing a company secretary, if required.

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