Advising On Directors Duties

As a director of a company, you are taking on a huge responsibility, including personal liability, and a lot of people do not realise this or appreciate what they need to do comply with their duties. 

The directors of a company are effectively the ‘brains’ behind the operation.  They determine the direction and approach that the company takes on a day-to-day basis and there are many circumstances where a director can be held liable for a decision made by the company, even if they did not agree with them.  For example, if your company becomes technically insolvent (i.e. the balance sheet shows more liabilities than assets or the business cannot pay its debts as they fall due), your directors' duties change and you now have to do what you can for the company’s creditors, rather than its shareholders. 

In such circumstances, you might find yourself at the wrong end of a claim and have to pay your personal money into the company. You may also find yourself charged with a criminal offence arising out of company business. 

At Blue Sky Law, we have a wealth of experience in helping directors both understand their duties and responsibilities and deal with any problems that arise. We also act for companies against directors who may have breached their duties and caused a financial loss to the company.

Whilst you may have insurance which you believe deals with your liabilities – should they arise – it is much better to deal with matters properly and not have the stress of worrying whether the policy covers you for your particular actions.  Policies seldom account for and recompense you fully for the management and personal time that you have to spend dealing with issues when they do arise.

Blue Sky Law can help you avoid or minimise the risks you take.