Stepping into the role of a company director is exciting, but it also comes with serious responsibilities. Whether you’re a hands-on leader, a silent partner, or working behind the scenes, the Companies Act 2006 sets out clear legal duties for directors.

Here are seven essentials every director should understand:

1. Follow the company’s constitution
The company’s constitution and articles of association aren’t just formalities — they set out the rules for how the business is run. Stray outside those powers, and you could be personally liable.

2. Promote the success of the company
Directors must act in the company’s best interests. That means more than making a profit — it includes:

• Considering long-term impact.

• Supporting employees.

• Nurturing supplier and customer relationships.

• Caring for the community and environment.

• Protecting the company’s reputation.

• Treating shareholders fairly.

If the company faces insolvency, your duty shifts toward protecting creditors.

3. Use your own independent judgment
Advice is helpful, but decisions rest with you. Even if pressured by shareholders or fellow directors, you must use your own judgment.

4. Exercise reasonable care, skill, and diligence
Directors are expected to act competently, based on both their role and their personal experience. If you have professional expertise, the law expects you to apply it.

5. Avoid conflicts of interest
You must prevent personal or family interests from clashing with company duties. This covers:

• Financial interests.

• Competing businesses.

• Information gained as a director.

Conflicts must be declared and managed properly — and this duty continues even after you step down.

6. Don’t accept benefits from third parties
Gifts, perks, or favors that could influence your decisions are off-limits. A little corporate hospitality might be fine, but only if there’s no conflict of interest.

7. Declare any interest in company transactions
If you (or a connected party) stand to gain from a company deal, you must declare it. Transparency is key, and sometimes stepping back from the decision is necessary.

Final thought
Being a director is more than a title — it’s a role with real legal responsibilities. Keeping on top of your duties protects both you and your company. If you’re ever unsure, get advice early. A quick conversation now can prevent much bigger problems later.