It is important to consider what you are letting yourself in for when agreeing to become a director or a director shareholder,
or even when agreeing to give away some of the control over your company. Directors have many duties to the company and its creditors. Those duties may compete with their own self-interests and may not be fully considered until things go wrong.
It is vitally important that ‘director’ responsibility is taken seriously and professionally to avoid claims that company money or assets have been mishandled and to avoid personal responsibility if company money or assets go missing or tax is not paid.
Directors cannot delegate responsibility to other directors.
You must keep good records of decisions made or not and the reasons behind the decisions taken, plus any challenges made to the way a company was being run should there be an argument that the directors ran the company poorly.
A managing director of a company must run things democratically. Directors are open to challenge of their actions in relation to accounting, discovery and specification, unfair prejudice, derivative actions, just and equitable winding up of the company and so on.
