Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 1 - No. 43)
Directors have a wide range of legal duties and responsibilities. The following are among the most important ones from a financial point of view. Directors must:
Always act in the best interests of the shareholders, even where this conflicts with their own personal interests
Take steps to ensure that the company is able to make a going concern
Do not allow the company to make what they know is risky business
Report to the shareholders annually on the company’s performance and position.
Explanation
Directors must act in the best interests of the shareholders, ensure the company is able to make a going concern, and report to the shareholders annually.
Comments (0)
