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Directors Duties


The law governing the duties owed by directors has had a shake-up with the introduction of the Companies Act 2006 in the UK.  Although much of the new legislation reflects the existing common law, it does contain some new concepts, new terminology and should act as a prompt for directors to take notice and make sure they comply with the duties owed by them.

Directors (and in some cases other individuals involved in management) owe numerous, and often conflicting, duties to the company they are appointed director of.

This section looks at the duties owed by directors and the practical steps that directors and companies can take to minimise the risk of directors inadvertently breaching their duties including training, reviewing constitutional documents and putting in place or reviewing appropriate indemnification provisions and insurance policies.

Specialist advice should be obtained before taking, or refraining from taking, action based on the contents of this site which is only intended as a brief note.  If you require specific advice on any aspect of this section or on any other UK employment related matters, please contact David Bickford or another member of the Penningtons Employment Team.

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