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Your responsibility as a director
If you are appointed as a director of any company, you should understand your responsibilities and the need to comply with both company law and the accepted code of behaviour of company directors.
These requirements are basically the same whether the company is a family business or a multinational. The law doesn’t treat a director any differently whether the company is a major public company or a private company or whether the director is being properly paid or is performing the role of director in an honorary capacity.
As a company director you bring together your responsibilities and obligations under the Companies Act with the potential to make a real difference to the company’s growth.
Directors and different types of company
Your involvement in the company as director will depend on what kind of company it is, how big it is and what kind of governance structures may be in place.
Many small, closely held companies have one or two directors, typically ‘Mum and Dad’. Large corporate businesses have large-scale formal structures in place with well-defined procedures and documentation relating to the board’s operations.