Directors’ Duties and Disqualification

At Askews Legal LLP our Company Law Solicitors have an in-depth knowledge of directors’ duties, how compliance is reached, and the consequences if one or more of the duties are breached. Our team can provide regular advice to your Board, giving you the confidence in knowing you are up-to-date and compliant with the Companies Act 2006 and other relevant legislation.

If you are facing disqualification as a director our Company Law Solicitors will liaise with our Disputes Resolution Department and if applicable our Business Crime and Regulatory team to put together a robust defence and advise and represent you if you and/or your company is subject to a regulatory investigation. You and your family can be completely confident that you have one of the best law firms in Coventry and Warwickshire on your side.

We are a diverse, multi-lingual law firm that uses best-in-class technology to provide clients with streamlined, modern, and highly effective company law advice and representation. Our years of experience in company law means we have a robust reputation for excellence with the UK’s best Barristers  and Queen’s Counsel , and industry experts who will when needed, bring additional support to our Corporate Law Department.

Below are answers to some common FAQs concerning Director’s Duties and Disqualification.

What are the duties of a company director?

The general duties of a company director are found in the Companies Act 2006. They are:

  • A company director must act in accordance with the company’s constitution and only exercise their powers for the purposes for which they are given.
  • A company director must act in good faith and promote the success of the company.
  • A company director must exercise independent judgment. They may consider the opinion or take the advice of others, but it must be their decision regarding whether or not to follow the advice.
  • A company director must exercise reasonable care, skill, and due diligence when undertaking their duties.
  • A company director must not place themselves in a position where there is a conflict, or possible conflict, between the duties they owe the company and either their personal interests or other duties owed to a third party.
  • A company director must not accept any benefits which are conferred on them due to their position as a company director. Although the meaning of the word ‘benefit’ is not specified in the Companies Act 2006 it has been defined by the OED as a favourable or helpful factor, circumstance, advantage, or profit.
  • If a company director has an interest in a proposed transaction or arrangement with the company they must declare the interest to their fellow directors.

Our Company Law Solicitors can quickly advise on any points relating to the general duties of a company director.

What are the penalties for breaching a general directors’ duty?

The penalties for breaching a particular duty can range from the termination of the Directors Service Agreement through to disqualification under section 6 of the Company Directors Disqualification Act 1986.

If a company director breaches the duty of exercising reasonable care, skill, and diligence, the remedy is damages. If one of the other fiduciary duties is breached, the company can:

  • Seek an injunction.
  • Ask the Court to set aside the transaction, restitution, and account of profits and/or ask for restoration of the company’s property.
  • Seek equitable compensation.

Our Company Law Solicitors have a wealth of experience in advising companies and individual directors on how best to manage a breach of directors’ duties. We have been advising business owners throughout the West Midlands for many years. We are proud of our personal service to all our clients and where possible we are always available by phone and will respond to your email within 24 hours. As a full-service law firm, we can also provide advice on other matters such as commercial property and disputes resolution.

Why choose us?

Our Solicitors are businesspeople themselves; therefore, we understand that every decision you make must encompass commercial reality. We receive most of our instructions via word of mouth recommendations because company directors and business owners throughout the West Midlands know that we have the knowledge and dedication required to advise on directors’ duties and disqualification swiftly and expertly.

To talk to us about directors’ duties and disqualification please call us on 02476 231000 or email

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