When you manage a company, you must ensure the proper functioning of the processes in your company following legal recommendations.
Have you ever wondered what your responsibilities are as the director of the company?
Have you fulfilled your legal obligations as required by the Companies Law? If your answer is no, I’m not sure, or maybe, read on …
Typical responsibilities mean that the director must act in the interest of the company and not in the interest of any other party, including shareholders. Not sure what that means? It may be better to use professional corporate secretarial services.
Understanding this principle should facilitate the decision on how to act when several interested parties appear with clearly conflicting interests. The company comes first. This principle applies even to companies with only one person, which means that the sole shareholder/director cannot put their interests above the interests of the company.
The obligation to act within the authority of the company
In addition to the duties and responsibilities imposed on directors following the Law, each company will have its own set of rules, known as its “constitution.”
- It would be best if you acted following the company’s bylaws; that is, directors must comply with the restrictions they contain.
- The powers delegated to the directors by the shareholders must be used in the best interest of the company.
Duty to promote the success of the company
The term “success” is not defined in the Law, as it may vary from one company to another. However, the fundamental principle is that each director has a legal obligation to try to act in a way that, in his opinion, is likely to bring “success” to the company. For most companies, “success” can mean sustained profitability.
Duty to exercise an independent judgment
This is evident, but the Law will not be violated if it acts following any preliminary agreement with the company to fulfill its obligations or following the company’s bylaws.
Now, are you wondering about your other legal obligations as a director? There is much more, and this article cannot cover them all.
Most accountants provide the company’s secretarial services and will ensure that all necessary regulatory documents are well prepared and presented. Thanks to the services, you will always be aware of any changes in the company from the legislation, as well as the impact that these changes may have on you and the directors of the companies. This is important because the correct measures can be taken on time and before it is too late to solve problems.
With so many legal responsibilities and obligations that you have to fulfill, it is better that you deliver these administrative tasks to a professional corporate secretary services singapore that provides secretarial services that will help you conduct business on the right side of the Law.