First, Know Your Duties and Obligations Before you agree to be a company's director, you should understand your duties and obligations. By fulfilling them in good faith, you can avoid conflict of interest and possible personal liability for company difficulties related to actions you take as a board member. Before you accept a board position, be sure you understand what will be expected of you.
Directors owe a fiduciary duty to their company.
This fiduciary duty includes a duty of loyalty to the company and a duty to act with care in carrying out responsibilities. It means that you must set aside your personal interests and make company decisions on the basis of what's best for the company, not what's best for you. The company is trusting you to do this. In practice, this means you must recognize when your and the company's interests are in conflict , advise the other directors of the conflict and abstain from voting on the matter. For example, you cannot vote on whether your company enters a contract with you or between the company and another entity in which you have a material interest or position of responsibility.