Duties and Responsibilities explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Directors manage a company on behalf of shareholders and carry legal duties under the Companies Act, 2013. Here are their key duties and responsibilities.
Statutory duties (Section 166)
- Act in good faith and in the best interests of the company
- Exercise due care, skill and diligence
- Avoid conflicts of interest and undue personal gain
- Not assign their office to anyone else
Compliance responsibilities
- Ensure timely filings, audits and maintenance of records
- Approve financial statements and disclosures
- Oversee statutory, tax and labour compliance
Liability
Directors can be personally liable for defaults, fraud or non-compliance, so they must stay informed and act diligently.
Frequently Asked Questions
What are the duties of a director?
To act in good faith, with due care and diligence, avoid conflicts of interest and comply with the Companies Act.
Can a director be personally liable?
Yes — for fraud, defaults and specific non-compliances.
What is Section 166?
The section listing the statutory duties of directors.
Do directors approve financial statements?
Yes — the board approves the financial statements before the AGM.
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