The Fish Rots From The Head: The Crisis in our Boardrooms: Developing the Crucial Skills of the Competent Director

by Bob Garratt

there is now a consolidated list of directors’ duties: The Seven Non-Exhaustive Duties of the 2006 Companies Act. There are many others but these are highlighted as the foundation for developing effective boards of directors in the UK: 1 To act within the powers of the company and to exercise powers only for the purpose for which they were conferred 2 To promote the success of the company and, in so doing, have regard to the likely consequences of any decision in the long term and in the interests of the company’s employees 3 To exercise independent judgement 4 To exercise the care, skill and diligence expected of a director with the knowledge, skill and experience that he has 5 To avoid conflicts of interest 6 Not to accept benefits from third parties 7 To declare any interest in a proposed transaction or arrangement. Directors must bear these seven duties in mind at all times and obtain professional advice if they are unsure of what is required in any given situation. So far there have been no legal precedents set under the new act.