Spring 2008 Newsletter Content Winter Of Discontent CGT Winners CGT Losers Shifty Business Anything To Declare? Long Arm Of The Law Irreplaceable You Earn As You Pay Ask Questions Later Capital Ideas ISA ISA ISA Referee! Go Green VAT Or No VAT? Taking The Register Close Encounters May Contain Nuts Going Concern Ancient History Business And Pleasure Do Your Duty Know Your Rights Time To Go? Passing The Buck

Do Your Duty A company director should act in the best interests of the company on behalf of the shareholders. That's always been a principle of law, but it's now a statutory duty with the Companies Act 2006 which took effect on 1 October 2007. Directors are also now supposed to consider the interests of the company's employees and the impact of its operations on the community and the environment. From October 2008 there will be more specific duties of directors, such as to avoid a conflict between their own interests and the interests of the company. In a big company, it's clear that these duties are needed - the shareholders are outsiders who don't have day-to-day control of the management. It may be less obvious in a small company where some or all of the shareholders are directors and vice versa. But it's still important to remember - the company is a legal person separate from the shareholders and the directors, and it has its own rights. A director - even one who owns 100% of the shares - should not regard the company's money as "mine". Paying it out has consequences - usually for tax - and taking too much out can get the director in serious trouble if the company goes bust. If you are not sure what your duties as a director involve, we will be happy to advise you.