There are numerous factors in agreeing on who should be appointed as a Company Director. Being a company director is not a minor issue, because distant from the big-picture obligations of a Director to govern the overall improvement of the company’s business, a Director moreover has responsibilities to be fulfilled in working honestly and to utilize adequate persistence in the discharge of his responsibilities. The person who is appointed as a Company Director will moreover have to work in good morality in the interests of the firm; act with outstanding care and mastery; avoid confrontations of interests; and utilize his strengths for proper purposes, etc.
This is particularly true if you are not established in Singapore, and will be evacuating the business actions and/or the running of the business to the Director who is established in Singapore. Your Director will have to assure that he/she complies with all the regulations and laws pertained to the exercise of his abilities in the role of Director.
Who can be a Company Director?
To be appointed as a Company Director, a person must be-
- A normal person is ordinarily a citizen in Singapore-ideally a Singaporean inhabitant but can be a Singapore Permanent Resident or an individual with an Employment Pass/ Dependent’s Pass.
- Minimum age of 18
Who appoints a Company Director?
Directors are appointed by the shareholders. After the online company incorporation by Heysara they manage or direct the affairs of a company and commonly formulate just the main business decisions. They appoint and monitor the actions of the officials.
Who cannot be a Director?
The following will disqualify an individual from coming to be the Director of any company:-
- An undischarged bankruptcy;
- A person sentenced in Singapore or elsewhere to any offense implicating fraud or corruption punishable with custody for 3 months or additional;
- An incapable director of another firm;
- A director of a firm which was wound up on floors of nationwide safety or interest;
- An individual condemned in Singapore for any offense with the formation or management of a firm;
- An individual who has been convicted immoral of 3 or more offenses in association with the statutes of the Companies Act within 5 years.
Statutory Duties
The statutory responsibilities of the Director are sketched in the Companies Act, namely Sections 145, 156, 157, 165, and 197. These are relatively distinct from the responsibilities of a Director under common law.
Other Company Director duties under common-law
The Director’s responsibilities under common-law are namely as follows:-
- To act in promising faith in the firm’s interests
The corporation’s interests are its interests as a distinct legal entity. It comprises the interests of all its partners and workers. A director should not perform any act to increase his interests.
- To act with outstanding care and mastery
The director is compelled to practice acceptable care and skill in attempting his duties.
- To avoid conflicts of interests
The director must prevent conflicts between his interests and those of the corporation. A director who is in any way, whether directly or indirectly, interested in a transaction or formulated transaction with the corporation shall as soon as feasible after the pertinent facts have to appear to his understanding declare the essence of his interest at a committee of the directors of the company.
