Risk of being a company director

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asked on Mar 30, 2004 at 15:31
by   Stella
If a person signed up to become a director of a company and then hears nothing of the company from the other director what are the implications and responsibility that the person will be held? The person do not wish to be invovled with the company anymore sensing something hanky panky is going on. Does he needs to do something to revoke his status as a director to prevent any future problems that may arise? Note that he was not given a copy of the signed document at all and he has not been in contact with the other directors fromn the day the signing occurred.
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answered on Apr 2, 2004 at 10:29
by   Vince
He, as one of the Directors should contact the Company and has the right to know and should insist to get clarification of the progress.

Should the company fail to meet his request, he ought to Retreat himself immediately to avoid future problem.
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answered on Apr 3, 2004 at 21:38
by   Unni
The analogy I put to you in response is crude but it serves to illustrate the point I wish to make. When you get maried, you are imbued with a set of responsibilities which comes with the union. It is incumbent upon yuo to exercise and discharge your obligations and to at least be aware of whats happening to your marriage.

If it is of convenience then what your wife or husband does with others without your knowledge is only irrelevant so far as you do not then sleep with them. You never know what exotic adventures they have been on and what life long partners of microsized dimensions they would have contratced then passed to you. I am sure you get the picture now.

When you sign up as a director, you have an obligation to yourself, the company and the law to know whats happening within reason. You ought to make it your business. when you fail to do so and take such a casual attitude towards it then worry about what could happen, you place yourself in the position of the casual spouse who suddenly is called upon to perform their conjugal rights. Too late to do a blood test too late to take the pill.

Go check the corporations records and returns in the relevant government department where these are lodged. Give notice to the other party or at least lodge a copy of this at the department and lodge a notice of your resignation as director. it can to some extent be retrospective.
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