3. Exercise reasonable care, skill and diligence
Because of vast legal and financial expectations, being a Director of a company (no matter the size) is not a role to be taken lightly. The Companies Act (2006) made it law that a director should be a diligent person who is capable of exercising reasonable care and skill.
A good director;
* should carry the obligation to seek all expert information to make reasonable decisions on behalf of the company.
* should be able to understand what external factors might impact the business, and make the right decisions to overcome any challenges
*should be able to monitor the business’ affairs and policies
*taking reasonable and active steps to guide and monitor business management.
When HMRC and Companies House write statutory notices to meet company deadlines, a good director should make sure that those duties are fulfilled on behalf of the company.