03: Responsibilities of a company director

A private limited company must have at least one director and one company secretary. From October 2008, it will not be necessary for private limited companies to have a company secretary, although the main legal obligations will remain the same and directors will still need to ensure the company is properly administered.

The director or directors must manage the company’s affairs in accordance with its articles of association and the law. The company secretary is the chief administrator of the company. In a small private business, this role is not a full-time job and company secretaries usually have other responsibilities, including being a director – but not the only director.

Every company director has a personal responsibility to ensure that statutory documents are delivered to the Registrar at Companies House as required. These include yearly accounts, annual returns and any changes pertaining to the registered office and to directors or the company secretary.

Directors are liable for penalties if accounts are filed late or incorrectly and could even be prosecuted, as it is a criminal offence to fail to deliver statutory documents on time.

Directors must also obey the law in relation to health and safety, employment and tax, and they may also be responsible for the actions of their employees.