Running a limited company – director responsibilities

You want to start a business..you may decide to set up as a limited company for tax reasons or because it makes you look more professional when dealing with clients and customers…but do you know what your responsibilities are when you become a director?

Legally, a director of a company should:

1. use their experience and skills to make the company a success;

2. follow the company’s rules as stated in the Articles of Association;

3. act in the interest of the company not themselves;

4. disclose any personal interest in any company transactions;

5. keep the company records and report any changes to Companies House and HMRC;

6. make sure the company’s accounts give a ‘true and fair view’ of the business’ finances; and

7. register for self assessment and submit a personal self assessment tax return each year

A director can delegate or outsource some of these tasks but remains legally responsible for them.  If a director does not follow the rules, they may be found personally liable for the company’s liabilities, be fined, be prosecuted or be disqualified as a company director.

 

Tracy Newman can advise on running a limited company.

 

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