The “Seven Duties” of a Director

The “Seven Duties” of a Director
  • 1. Act within the powers of the company’s constitution.
  • 2. Promote the success of the company
    • To act in a way he/she considers, in good faith, would be most likely to promote
      the success of the company for the benefit of its members as a whole, and in
      doing so have regard (amongst other matters) to:-
    • 1. The likely consequences in the long term,
    • 2. The interests of the employees,
    • 3. The need to foster the company’s business relationships with suppliers, customers and others,
    • 4. The impact on the community and environment,
    • 5. Maintaining a reputation of high standards,
    • 6. Acting fairly between company members
  • 3. Exercise independent judgement.
  • 4. Exercise reasonable care, skill and diligence.
  • 5. Avoid conflicts of interest.
  • 6. Not to accept benefits from third parties.
  • 7. To declare an interest in proposed transactions or arrangements.