What Are The Duties And Responsibilities Of Nominee Directors

By Author: Robert Sparks
Total Articles: 68
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Directors of Singapore companies are required to abide with Companies Act of Singapore. They are provided powers to oversee operation and duties to perform and accomplish. They are also responsible and answerable to the company’s shareholders.

This article will provide you a list and brief description of common duties and responsibilities of directors in Singapore companies..

Duties and Responsibilities:
• Directors have a fiduciary duty to their company. This means that they must be loyal to the company and must act honestly and in good faith when exercising their powers.
• Every company shall keep a register of its members and the various statutory books at the company's registered office or some other appropriate place where notice of the place has been lodged with the Accounting and Corporate Regulatory Authority (ACRA).
• Changes in certain statutory information (e.g. notification of a change of registered office address, appointment or resignation of directors, secretaries, or auditors, allotment of shares) must be lodged with the ACRA on the prescribed forms within specified time ...
... limits as stipulated by the Companies Act.
• The directors and managers of every company are required to keep proper accounting records to sufficiently explain the transactions and financial position of the company. The records usually contain entries of all receipts and payments, details of sales and purchases of goods, record of the company's assets and liabilities and records of annual stocktaking if the company deals in goods.
• The directors must prepare a profit and loss accounts and balance sheet together with notes to the accounts giving a true and fair view of the state of affairs of the company at the end of the financial year. The directors of a company must appoint an auditor within three months of the company's incorporation who will hold office until the conclusion of the first annual general meeting where they may be reappointed.
• The directors should ensure that there are regular meetings to review the company's financial and trading position properly. The frequency of the meetings depends upon the nature and scale of the company's operation.
• The directors must ensure that the first AGM is held within 18 months of the incorporation of the company and, following that, in every calendar year at not more than 15 months interval. The Companies Act also requires that all AGMs must be held within six months from the financial year-end of the company.
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