News & legal updates

Solicitors create guide for company directors - 17- 06- 2009

Southend solicitors BTMK are warning business directors to ensure they are fully aware of a recent shake-up in company law.

The final phase of the Companies Act 2006 will be brought into effect on 1 October 2009; however, previous implementation of some sections means that there are seven statutory duties that apply to directors of companies of all sizes.

This is a complex area that requires careful ongoing compliance, so BTMK have created a handy online guide to give company heads the information they need in a nutshell so they can ensure they are conforming to the rules.

The guide takes you step by step through each of the seven directors duties, which broadly require that they:

• promote the success of the company
• exercise independent judgment
• declare interest in proposed transactions or arrangements
• do not accept benefits from third parties
• avoid conflicts of interests
• exercise standard of care, using knowledge, skill and experience
• act within their powers

The legislation means that companies need to ensure that their decision-making processes and company constitutions recognise the new directors duties, said Lee Emptage, solicitor at BTMK.

It is important that company directors are aware of the changes, and our guide goes some way to helping them ensure they know exactly what they should be doing to comply with the Act.

Of course, directors would be wise to seek professional advice if unsure about the issues arising from the changes.

To access the online guide click here