The duties of directors can be burdensome, but guiding a company is a satisfying role.
Private businesses and public businesses are both owned by their investors, but run by their directors. The responsibilities of company directors are not just around managing the company and choosing its tactical direction; business directors also have legal obligations and should act within a set of specified rules. The many duties of directors in company law exist to guarantee that directors act in the business's interest and in such a way which enables them to keep independent and objective judgement. For instance, directors are asked to maintain the credibility of the business by acting fairly to its employees and vendors. Directors are also required to act with care and skill, which is one reason skilled company directors like Stephen Catlin are valued. One essential aspect of business directorships is preventing conflicts of interest. For example, being on the boards of a number of businesses might result in a conflict if one of the firms provides a specialist service to another.
Businesses have boards who have legal obligations to the company and the shareholders, however probably the most valuable director for deciding the tactical path of a business is its chief executive officer, or CEO. The Chief Executive Officer is usually responsible for the daily decision-making and in many cases plays a crucial function in bringing brand-new profits sources into the business, in addition to interacting with its substantial shareholders. In common with other board members, the CEO needs to exercise all the powers and duties of directors of a company with reasonable care. CEOs are typically experienced corporate figures like Marc Grandisson. It is mainly a functional role, which differentiates it from the role of the Chair of the board, who has a legal obligation to safeguard the interests of investors. In some cases the functions of CEO and chairperson are integrated, but some commentators argue that this causes challenges around clash of interest.
Being a business director is an important position, and the decisions made by directors can have a huge effect on the success or failure of any enterprise. Among the legal responsibilities of a company director are rules around holding advisory roles, or having close members of your family make money from your position as a director. Experienced business directors like Dominic Silvester are required to have a full understanding of their legal commitments and consult with other members of the board if any tight spot occurs. Directors are often also shareholders in businesses, but for listed companies in particular there are strict policies around announcing the buying and selling of shares. Failing to reveal interests can be treated as a criminal offence. If a company is in monetary difficulties and is at risk of being declared insolvent, directors can wind up in a position of being personally accountable for a company's financial obligations, depending on the structure of the company and the reasons for its collapse.