AM Corp Blog

At the foundation of every company is built on these stakeholders - Directors. They hold crucial appointments that chart the direction and operation of the company. The longstanding relationship of directors in the company reflects the health of the company’s performance. To pick and appoint the right director can boost the company’s market position or set them back in their efforts.  Here is an easy guide to all you need to know about appointment of directors.

Who is a director?

A director is the officer in charge of managing the operations and setting directions for the company. He/she must be objective in decision making, executing his duties with diligence and integrity and act in the best interest of the company.

In any company, the role of directors is always a vital one. Apart from setting direction and making strategic decisions, they carry the heavy responsibility to ensure the company is fulfilling its statutory obligations. Recently, there was a stark increase in directors disqualified for breaches of the Companies Act. This led to authorities stepping up in their regulatory actions against repeat offenders. Once disqualified, the individual is barred from taking directorship or participating in management of any company unless given permission by the High Court or Assignee. They will also be listed on the Accounting and Corporate Regulatory Authority's (ACRA) public register. 

The penalty and disqualification being imposed on directors reinforces the importance of directors complying with their statutory obligations.