Expert Advice on Directors’ Responsibilities and Liabilities
Company directors have extensive legal duties and responsibilities under UK law. Directors who fail to fulfil these obligations may face personal liability and could lead to serious disputes with shareholders, creditors, or regulators. Our London-based solicitors offer clear, strategic advice to directors and companies on their responsibilities, supporting effective risk management and dispute resolution.
Understanding Directors’ Duties Under UK Law
Directors’ duties are primarily set out in sections 171–177 of the Companies Act 2006 and apply to executive and non-executive directors, de facto directors, and shadow directors.
Key statutory duties include the duty to:
- Act within powers
- Promote the success of the company
- Exercise independent judgment
- Exercise reasonable care, skill, and diligence
- Avoid conflicts of interest
- Not accept benefits from third parties
- Declare interest in proposed transactions
We can provide practical guidance on how these duties apply in day-to-day decision-making.
Our Directors’ Duties Legal Services
We advise directors, shareholders, and companies on all aspects of directors’ duties, including:
- Compliance with statutory and fiduciary duties
- Managing conflicts of interest
- Breaches of directors’ duties claims
- Defending directors facing allegations of misconduct
- Derivative actions brought by shareholders
- Misfeasance and breach of fiduciary duty claims
- Directors’ duties in shareholder disputes
- Directors’ responsibilities in financially distressed companies
Our advice is always tailored to your role, risks, and commercial objectives.
Breach of Directors’ Duties
A breach of directors’ duties can arise in many situations, including:
- Misuse of company assets
- Excessive remuneration
- Failure to act in the company’s best interests
- Preferential treatment of certain shareholders
- Improper share issuances or dilution
- Failure to disclose conflicts
We can advise on remedies that are available to companies and shareholders, including injunctions, damages, and removal of directors, as well as defending directors against unjustified claims.
Directors’ Duties and Insolvency
When a company is in financial difficulty, directors’ duties shift towards protecting the interests of creditors. We advise directors on:
- Wrongful and fraudulent trading risks
- Duties during insolvency and restructuring
- Personal liability exposure
- Working with insolvency practitioners
Getting advice early on these matters can greatly reduce risk.
Why Choose Us?
- Extensive experience in directors’ duties and company disputes
- Commercial, practical advice tailored to UK law
- Clear guidance on risk and liability
- Transparent fees and realistic timescales
- London-based firm acting nationwide
We help directors make assured, compliant choices and also robustly defend clients when disputes arise.
Contact Us Today
We are a boutique Mayfair firm with over 30 years’ legal experience. Trusted by businesses, entrepreneurs and high-net-worth individuals; we are fast, discreet, and highly responsive, often within 24 hours. Contact us today for expert advice.