The Role and Responsibilities of a Company Director

The role and responsibilities of a limited company director

A limited company director is responsible for managing the company’s operations and making decisions that benefit its members. Key responsibilities include ensuring compliance with legal obligations, promoting the company’s success, exercising independent judgment, and managing finances. Directors must also oversee filing and reporting requirements, ensuring accurate records and timely submissions.

Written by Nicholas Campion

2 minute read Last Updated: June 24, 2025

The role of a limited company director centres around the lawful and effective management of a company and its activities, making important decisions on behalf and for the benefit of the business and its members. In this blog, we take a brief look at this role and the key responsibilities involved.

Key takeaways

Limited company directors must prioritise the company’s success while adhering to statutory duties outlined in the Companies Act 2006.
Directors are responsible for managing finances and ensuring compliance with filing and reporting obligations.
Anyone over 16, not bankrupt or disqualified, can become a limited company director.

The role of a limited company director

There are two distinct bodies of people in a limited company. The members (shareholders/guarantors) who own and control the company; and the directors who manage the activities and finances of the business on a day-to-day basis.

Directors are chosen and appointed at the discretion of company members. In many cases, directors and members are the same people. This is commonplace in smaller companies, particularly those which are set up by one or two people who want to own, control, and manage a business by themselves.

Limited company directors – everything you need to know

The role of a limited company director is to make the business a success for its members. This involves making strategic and operational decisions, managing finances responsibly, and ensuring that all statutory obligations are met.

The responsibilities of a limited company director

Under the Companies Act 2006 (sections 171 to 177), a limited company director has a legal duty to:

Act within their powers, as prescribed by the company’s constitution
Promote the success of the company
Exercise independent judgment
Exercise reasonable care, skill, and diligence
Avoid conflicts of interest
Not accept benefits from third particles
Declare interests in existing or proposed transactions or arrangements

In addition to these general statutory duties, a limited company director is responsible for overseeing all filing and reporting obligations of the business.

This includes the preparation and filing of annual accounts and tax returns, completing annual confirmation statements, paying business taxes, maintaining the company’s statutory books, and notifying Companies House when key company details change.

Can anyone be a limited company director?

Almost anyone can be a limited company director, with the exception of people below the age of 16, people who are subject to the restrictions of a bankruptcy order or Debt Relief Order, and disqualified directors who are currently banned from acting in such capacity for a specific period of time.

So there you have it – a brief introduction to the role and responsibilities of a limited company director. If you have any questions, please leave them in the comment section below and we will get back to you shortly.