As a Singapore Company Director, one plays a critical role in the management and governance of the company. The Companies Act requires that all directors act honestly and in the best interests of the company, and that they exercise reasonable care, skill and diligence in the performance of their duties. In this article, we will discuss the various roles and responsibilities of a Singapore Company Director in more detail:
Acting in the best interest of the company
Directors must make decisions that will improve the financial performance of the company and ensure its long-term viability. This includes making decisions that are in the best interests of the company and its shareholders, as well as ensuring that the company complies with all legal and regulatory requirements.
Directors are responsible for ensuring that the company’s financial statements are accurate and that they comply with accounting standards, and that the company is able to pay its debts as they fall due. They also need to ensure that the company’s business operations comply with relevant laws and regulations, including filing annual returns, ensuring that the company is solvent and that it maintains accurate records of its shareholders and directors.
Providing strategic direction
Directors are responsible for setting the company’s overall goals and objectives, as well as developing plans to achieve them. This includes setting long-term and short-term plans, determining the company’s business strategy, and making decisions about the company’s operations, including the hiring and firing of employees, the acquisition of new assets, and the disposal of existing assets. Directors must also ensure that the company’s resources are used effectively and that the company is financially stable. This includes monitoring the company’s cash flow, ensuring that the company has adequate funding, and managing the company’s financial risks.
Managing financial affairs
Directors are responsible for preparing financial statements, budgets, and other financial reports that are required by law. This includes preparing the company’s annual financial statements, ensuring that they comply with accounting standards and that they accurately reflect the company’s financial position. Directors must also ensure that the company’s financial records are accurate and up-to-date, and that all tax obligations are met. This includes filing tax returns, ensuring that the company pays its taxes on time, and keeping accurate records of all tax-related transactions.
Ensuring compliance with the Companies Act
Directors must ensure that the company is properly incorporated and registered, and that it maintains accurate records of its shareholders and directors. This includes ensuring that the company is incorporated in accordance with the Companies Act, that it is registered with the Accounting and Corporate Regulatory Authority (ACRA) and that it maintains accurate records of its shareholders and directors.
Directors must also ensure that the company’s annual general meetings are held on time and that all shareholders are given proper notice of these meetings. This includes ensuring that the company holds its annual general meetings on time, that all shareholders are given proper notice of the meetings, and that the meetings are conducted in accordance with the company’s constitution.
Communicating with shareholders
Directors must ensure that shareholders are informed about the company’s financial performance and other important matters. This includes providing regular financial reports, holding annual general meetings, and answering any questions shareholders may have about the company’s operations.
Directors must also ensure that shareholders have the opportunity to participate in the company’s decision-making process. This includes ensuring that shareholders are given proper notice of meetings, that they are provided with the information they need to make informed decisions, and that they are given the opportunity to vote on important matters.
Appointment of a Resident Director in Singapore
The Singapore Companies Act requires that at least one director of a Singapore company must be a Singapore resident. A Singapore resident is defined as an individual who holds a Singapore Permanent Resident status, Singapore Citizenship or Employment Pass. The resident director plays an important role in ensuring compliance with Singapore laws and regulations, and is responsible for the overall management and governance of the company.
It is important to note that the resident director must be physically present in Singapore and have an active role in the day-to-day operations of the company. Having a resident director is an important compliance requirement for any new company in Singapore and failure to comply can lead to penalties and fines.
If you need help to meet your statutory requirements of a resident director, feel free to reach out to us to find out about our Singapore Nominee Director Service.