The board of directors steers the company and formally oversees performance and activities.
Directors must follow seven principles, according to the Company Act 2006:
Act within powers As set out in the company’s Articles of Association Promote the long-term success of the company Make decisions that aim to benefit the company and its members as a whole, rather than one group of shareholders, for example Exercise independent judgement You can of course accept advice but you are still responsible for forming your own view Exercise reasonable care, skill and diligence Take your duty to the board and the company seriously Avoid conflicts of interest Don’t put yourself in a position where you, your family or associates personally benefit from a decision the board makes Declare existing or prospective interests Let the board know if there might be a potential conflict of interest Don’t accept benefits from third parties Stay impartial as a decision-maker You can read more about the duties of a director on the gov.uk website