As well as meeting strategic goals and commercial objectives, directors have an obligation to know their statutory obligations under the Companies Act 2006. As recent high-profile cases have seen, not only do companies risk reputational damage but there are severe penalties for directors who fail to be mindful of their duties.
We work with companies of all sizes across a variety of sectors to deliver directors’ training that meets the needs of their organisation and the number of directors requiring training. You can choose traditional face-to-face training, live webinars where directors are located across multiple sites or pre-recorded webinars that can be accessed at the convenience of the directors. That way, you ensure that training fits with your business strategy. Training topics can include:
It is also key that breaches of those duties are recognised and addressed promptly. You want your organisation to reach the highest standards of corporate governance, but many directors are unaware of their duties under the law or the consequences for non-compliance. As these duties are owed by the director to the company, the company (or in certain limited circumstances the members of the company) may be able to bring an action against the director for any breach.
The remedies available to the company range from an injunction, setting aside a transaction, restoration of company property held by the director and damages. In particular, the failure of a director to disclose his interest in an existing transaction or arrangement could result in a criminal fine. There is also a risk that a breach of duty could be grounds for the termination of a director's service contract or the disqualification of a director under the Company Directors Disqualification Act 1986
Directors, particularly those who are perhaps based outside the UK, are often unaware that they are criminally liable for breaching their directors’ duties. Similarly, companies whose directors fail to act in accordance with their statutory duties risk their good standing and reputation. So ensuring that directors are fully aware of their duties provides protection for both and supports corporate governance best practice.