“We hope this new one-stop shop provides the solution and helps directors take their companies in a positive direction” – Leanne Webb, Project Lead at the Insolvency Service.
On 10 July 2023, the Insolvency Service launched their new information hub to support company directors. Particularly, this provides guidance which will help directors comply with their general duties as detailed in the Companies Act 2006 section 171 to 177:
171 – Duty to act within powers
172 – Duty to promote the success of the company
173 – Duty to exercise independent judgement
174 – Duty to exercise reasonable care, skill, diligence
175 – Duty to avoid conflicts of interest
176 – Duty not to accept benefits from third parties
177 – Duty to declare interest in proposed transaction or arrangement.
We have seen a recent increase in the Insolvency Service’s investigation into director misconduct. It is crucial for directors to ensure that they are complying with the duties they owe when running a company. The introduction of the information hub provides clear and concise videos and reports on this and also provides information on penalties they could face, highlighting the significance of their duties as directors.
The Insolvency Service has explained that “our research found that too many company directors struggled to locate the existing guidance that they needed, and that it was often complicated or overwhelming”. Therefore, to ensure that the information hub covered all the essential information, the project worked closely with HMRC, Companies House and business finance specialists.
The director information hub can be accessed here. You will be able to access advice on topics such as:
Getting your company started
Your duties, responsibilities and obligations as a director
Spotting the signs of company distress
Turning your company around
Avoidable insolvency and insolvency
Consequences of company insolvency
With the ever-increasing numbers of investigations into directors’ misconduct, it is crucial that directors understand their duties. The new director information hub provides a helpful resource for all directors. If you require advice as a director, whether it is concerns pre-insolvency or post insolvency investigations, our specialist insolvency team will be able to assist. To discuss your circumstances in confidence, please call 0845 287 0939 or contact us by email.