Grant Thornton is organising a webinar called ‘The Duties and Responsibilities of Directors’. Directors are the backbone behind the good corporate governance of a company. While upon the inception of their role they were vested with generous maneuverability and freedom of control, the development of the Companies Act provides for more defined powers and responsibilities to ensure practices of good faith and diligence in the corporate sector.
As the chief insiders of a company, directors are responsible for day-to-day affairs and their role does not entail directly looking after the profits of the shareholders who appoint them, but rather the best interests of the company as a whole. Nowadays, this most important organ of the organisational structure of a company faces several challenges to make sure it does not exceed the limitations of the authority granted to it, as the repercussions may be significant possibly leading not only to fines but also criminal penalties and personal liability.
Directors must have a good understanding of the proper regulation of a business environment as well as company laws and regulations, financial reporting obligations and tax legislation that would provide for further competence in the execution of their duties. The director has various duties of loyalty and care and has traditionally been deemed the mandatory of the company. When acting together, directors are empowered to make decisions in the company’s own name and thus they must further ensure that through such actions, they do not go beyond the objects constituted in company statute.
Peter Drucker once said that “Rank does not confer privilege or give power. It imposes responsibility.” The law establishes that directors are entrusted with the management and administration of a company. In virtue of the said trust, it also bestows extensive responsibilities upon directors. The webinar will explore the expectations at law for directors of any company, with a detailed focus on the additional expectations imposed on directors of listed and regulated entities.
Please click on the following link to register