The new directors duties as set out in the companies act 2006 are starting to get everyone's interest. A recent solicitor's briefing tells us that the fact that directors' duties are now set out in black and white and are available to everyone is likely to result in directors being placed under greater scrutiny than is currently the case.
Just so that you remember, on 1 October 2007, new duties were spelled out for directors and further rules come into force in October 2009- this changed from 2008 this week.
By the way, to my friends who run FSA companies, your duties under the companies act are magnified by your parallel duties under the principle based regulation, and if you cannot demonstrate audit of your management processes, you haven't done them.
Isn't it time to carry out an audit of your directors' duties?
1. Check you understand your new duties. Ignorance is no defence.
2. record your compliance and all your material decisions
3. Check your service agreements and your policies for HR and compliance
4. Check your directors insurance complies with the new act- check you understand what it covers you for.
Maybe a good time to review your overall insurance, keyman, shareholder protection, ill health benefits too.
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