The Directors’ responsibilities in a Cyprus Company
The director of a Cyprus Company has among others the following responsibilities:
- To act in the best interests of the company as a whole.
- The Directors’ responsibility is towards the company as a whole and not to a distinct group of shareholders or creditors
- To run the company according to the rules and regulations of the articles of association
- Articles of Association are one of the essential parts of the constitution of a company. They are a set of rules that must be followed. Failure to follow these rules can result in legal action depending on the severity of the offense.
- Should the Directors fail to adhere to the Articles of Association, they may be liable for any financial losses the company suffers.
- To maintain company records and report any changes to the Cyprus Registrar of Companies
- To file the company’s Financial Statements and Tax Return
- To Calculate and pay the Corporation Tax accordingly when it is due
- Finally, to inform the other Directors of the company if they might personally benefit from a transaction the company makes
Even though the Directors of the Cyprus Company have the right to assign certain day-to-day activities to other persons (for example, an accountant) they are still legally responsible for your company’s records, accounts, and performance.
If the Directors don’t perform their responsibilities towards the company, they have the risk of fines, prosecutions, and disqualification.
If you want to start the registration process of your Cyprus Company contact us now