A director is the person responsible for managing the affairs of the company and providing it with directions. As a director, you must make decisions objectively, act in the best interest of the company and be honest and diligent in carrying out your duties.
Even if an individual is not formally appointed as a director, he will still be recognized as a director in the eyes of the law if the other directors of a company follow his instructions or if he is involved in the management of the company.
Furthermore, there is no difference between an ‘active’, ‘inactive’, ‘nominee’ or ‘sleeping’ director. Under the law, a person is recognised as a director once he has agreed to become one.
All directors owe a duty to the company and have to ensure that the company complies with regulatory requirements, regardless of the level of participation in the company’s affairs. Even if a director is inactive in the management of a company, the director is not excused by his director’s duty.
