What are the powers of a Company Director?

What are powers of a company director?

A company director is a person who is responsible for the management and direction of a company. The powers of a company director are set out in the Companies Act 2006 and are designed to enable directors to carry out their duties and make informed decisions.

Power to manage the company

The primary power of a company director is the power to manage the company. This includes making decisions about the day-to-day running of the company, setting strategic objectives, and making decisions about investments and acquisitions.

Power to delegate

Directors have the power to delegate their powers and responsibilities to other individuals within the company. However, directors remain responsible for the decisions made by those to whom they have delegated their powers.

Power to appoint and remove other directors

Directors have the power to appoint and remove other directors. This includes making decisions about the appointment of executive and non-executive directors, as well as the appointment of company secretaries and other officers.

Power to call general meetings

Directors have the power to call general meetings of the company. This includes annual general meetings and extraordinary general meetings, which may be called to make decisions on specific matters.

Power to issue shares

Directors have the power to issue shares in the company. This includes making decisions about the number of shares to be issued, the price of those shares, and the terms and conditions of the share issue.

Power to declare dividends

Directors have the power to declare dividends to shareholders. This includes making decisions about the amount of the dividend, the timing of the dividend payment, and the method of payment.

Power to borrow money

Directors have the power to borrow money on behalf of the company. This includes making decisions about the amount of money to be borrowed, the terms and conditions of the loan, and the repayment schedule.

Power to enter into contracts

Directors have the power to enter into contracts on behalf of the company. This includes making decisions about the terms and conditions of the contract, the duration of the contract, and any obligations or responsibilities arising from the contract.

Conclusion

In summary, the powers of a company director in the UK are wide-ranging and designed to enable directors to carry out their duties and make informed decisions. Directors have the power to manage the company, delegate their powers, appoint and remove other directors, call general meetings, issue shares, declare dividends, borrow money, and enter into contracts. By exercising these powers responsibly and in the best interests of the company and its shareholders, directors can help to ensure the long-term success of the company.