Directorships - What are you signing up for

Directorships – What are you signing up for?

With our Consultancy, we regularly open and establish a number of companies for clients across the countries we have presence for those looking to come to Asia to expand their current operations.

And why not – the economic opportunities in Southeast Asia remain strong with a growing middle-class population.

New business establishers normally nominate as being the Director of the Company on commencement, but do they really know what they are signing themselves up for – invariably not!

Being a Director of a Company in most countries comes with significant risks, duties, and responsibilities.

Being a Director of a company means that you have the ultimate responsibility for the management of the company and you must act in the best interests of the shareholders. Any failings of the company in terms of compliance and litigation fall on the Directors – you will be the one that has to go to court and explain your actions. A default position of, “my accountant or consultant advised me”, is not an acceptable defense.

As a Director, you should keep yourself abreast of all the issues in the Company at all times. Get involved and understand your risks and exposures so you can manage them. You won’t be able to understand all the issues, so ensure you have regular Directors Meetings and ask questions about what the issues are.

Penalties for failing in the responsibilities as a Director are severe and can result in fines, jail and being banned from running a business in the future.

Engage and counsel with good advisors you trust that can challenge you on issues and above all, give thought and proceed with some caution.