What are the Director’s Duties under the Companies Act?

A Director is responsible for managing the affairs of the company and setting the company’s strategic direction. A Director is required under the Companies Act to ensure accurate and timely record keeping, prepare financial statements (if applicable) and comply with corporate filings and other disclosures. The director also has the legal duty to advance the interests of the company, act honestly and in good faith in exercising the given powers. The consequences of breaching the director’s duties can be both civil and criminal in nature. Different offences carry different levels of penalty. For common offences, a Director could be liable up to a fine of S$5,000 or even imprisonment of up to two years. Other offences can result in disqualification from being a Director for a period of 5 years.

Updated on: 04/01/2023