After careful consideration, you have finally decided to bring your idea to life and launch your brand-new insurance brokerage but have you considered what is required of you as a company director?
Here is a summary of the 7 duties of a company director taken from Companies House.
1. Your company’s constitution
All limited companies will have Articles of Associations, chances are you have opted for the model one’s provided as standard, but you really should read this document and familiarise yourself with your company’s constitution.
2. Promoting the success of your company
This may seem like an obvious one but what is often overlooked by new Directors is that the limited company and the Director are two separate entities. You need to ensure you are giving your company the best chance of success and be acting in its best interests.
3. Independent judgment
Easy right? Making independent judgments can be more challenging when you are having to juggle various viewpoints. What you need to remember is that ultimately, the Directors are liable for their decision making and therefore you need to be satisfied that you are making your own decisions.
4. Exercise reasonable care, skill, and diligence
When making decisions, make sure you are acting reasonably within your skillset. There will be expectations of you to ensure you are acting within your various stakeholders’ interests and upholding their rights.
5. Conflicts of interest and personal benefits
The next 3 legal duties relate to managing conflicts of interest. These need to be managed and for you to be upfront with other stakeholders when these moments arrive.
“At the Movo Partnership, we support new start up insurance brokerage with more than just a trading platform but also with good advice and lending support when needed”.
If you are thinking of setting out on your own, contact us for a confidential discussion. Please also view the guidance given to company directors from Companies House: https://www.gov.uk/guidance/being-a-company-director