The role of a director cannot be taken lightly. As a director, one should carry out his or her duties carefully and honestly. If found to be in breach of statutory duties, a director may face criminal prosecution.
This year for instance, there were separate reports of a company director convicted for lodging false information with ACRA and an undischarged bankrupt convicted for managing a company without approval. The former was fined $10,000, while the latter was sentenced to 4 weeks’ imprisonment (Read the press release released by ACRA here).
Are you a qualified director?
Not everyone can become a company director. In Singapore, a company director must be:
- A natural person
- A local resident
- At least 18 years old
Those who cannot qualify as a company director include:
- An undischarged bankrupt
- An existing director of an insolvent company
- A director in 3 or more companies which ACRA struck off within a 5-year period
- Debarred by ACRA for breaches
- Convicted for fraud
- Convicted for 3 or more BizFile+ offences within a 5-year period
Duties of a Director
A director is obligated to the following:
- Act in the interest of the company
- Act honestly
- Exercise care and diligence
- Avoid conflicts of interest
- Do not misuse power
- Do not misuse information
Responsibilities of a Director under the Companies Act
A director is responsible for complying with all statutory requirements in the Companies Act. This includes:
- Holding Annual General Meetings (AGM)
- Filing of Annual Returns
- Presenting company financial statements
ACRA Director Training Programme
To help raise awareness of duties and responsibilities, and grow the competency of aspiring and existing directors, ACRA has launched an online Director Training Programme. This online programme consists of interactive content, complete with Q&A sections and case studies, and is a comprehensive resource for individuals who want to learn more about being a company director in Singapore.
If in doubt, speak with a qualified filing agent.