Director

Complete Guide to Director Roles and Responsibilities in Singapore

Learn everything you need to know about being a director of a Singapore company - including duties, powers, legal obligations, and compliance requirements.

Corporate Governance Core

1+
Min. Directors
18+
Min. Age
SG
Residency Req.
High
Responsibility
Role Overview

What is a Director?

A Director is an individual appointed to manage and control the affairs of a company. In Singapore, every company must have at least one director who is ordinarily resident in Singapore. Directors have significant responsibilities and are subject to various duties under the Companies Act 1967.

Management Role

Responsible for managing and controlling company affairs

Legal Duties

Subject to statutory and fiduciary duties under law

Personal Liability

Can be held personally liable for breaches of duty

Compliance Oversight

Ensure company compliance with laws and regulations

Director Requirements

Eligibility and qualification requirements for directors

Basic Eligibility

  • Must be at least 18 years old
  • Must be a natural person (not a corporate entity)
  • Must not be an undischarged bankrupt
  • Must not be disqualified under the Companies Act
  • Must have mental capacity to act as director

Residency Requirements

  • At least one director must be ordinarily resident in Singapore
  • Ordinarily resident means physically present for 183+ days in preceding year
  • Singapore citizens and permanent residents qualify
  • Employment Pass holders may qualify with sufficient presence
  • Non-residents can be directors but company needs resident director

Appointment Process

  • Appointed by shareholders in general meeting
  • Can be appointed by other directors (subject to articles)
  • Must consent to appointment in writing
  • Appointment must be filed with ACRA within 14 days
  • Director's particulars must be maintained in company registers

Ongoing Compliance

  • Attend board meetings and participate in decisions
  • Maintain confidentiality of company information
  • Declare interests in transactions with company
  • File required returns and notifications with ACRA
  • Ensure company maintains proper records and accounts

What is a Nominee Director?

A Nominee Director is a person who acts as a director on behalf of the actual controller. They must meet "fit and proper" criteria and can only be appointed by a registered Corporate Service Provider (CSP). Nominee directors still carry the same statutory duties and responsibilities as regular directors but typically act under a nominee agreement.

Legal Duties

Director Duties

Key statutory and fiduciary duties of directors

Duty of Care, Skill and Diligence

Exercise reasonable care, skill and diligence expected of a director in their position

Key Requirements

  • Act with the care of a reasonably diligent person
  • Exercise independent judgment in decision-making
  • Stay informed about company's business and affairs
  • Make decisions based on adequate information
  • Seek professional advice when necessary

Duty to Act in Good Faith

Act honestly and in good faith in the best interests of the company

Key Requirements

  • Put company's interests above personal interests
  • Act for proper purposes and within powers
  • Avoid conflicts of interest where possible
  • Exercise powers for benefit of company as a whole
  • Consider interests of creditors when company near insolvency

Duty Not to Profit from Position

Not make unauthorized profits from directorship or use company property improperly

Key Requirements

  • Not use company property for personal benefit
  • Not compete with company's business
  • Disclose any personal interest in company transactions
  • Account for any secret profits made
  • Not accept benefits from third parties

Duty to Declare Interests

Declare any direct or indirect interest in transactions with the company

Key Requirements

  • Declare interests before company enters transaction
  • Declaration can be made at board meeting or in writing
  • Must declare nature and extent of interest
  • Update declaration if interest changes
  • Maintain register of directors' interests
Director Powers

Director Powers

Authority and powers vested in directors

Management Powers

General power to manage company's business and affairs

Specific Powers

  • Make operational and strategic decisions
  • Enter into contracts on behalf of company
  • Hire and dismiss employees
  • Set company policies and procedures
  • Authorize expenditure within delegated limits

Financial Powers

Authority over company's financial matters and resources

Specific Powers

  • Approve annual budgets and financial plans
  • Authorize borrowings and credit facilities
  • Approve major capital expenditure
  • Declare dividends (subject to solvency)
  • Open and operate bank accounts

Corporate Actions

Power to make decisions regarding corporate structure and governance

Specific Powers

  • Convene shareholders' meetings
  • Recommend changes to share capital
  • Approve allotment of new shares
  • Make recommendations for company reorganization
  • Approve related party transactions

Delegation Powers

Authority to delegate powers and establish committees

Specific Powers

  • Delegate powers to executive directors
  • Establish board committees
  • Appoint key management personnel
  • Set terms of reference for committees
  • Monitor performance of delegated authority

What is a Board Resolution?

A Board Resolution is a formal decision made by the board of directors during an official meeting. It records the board's decisions, including appointing new directors, approving major transactions, or other corporate matters. Resolutions must be approved by a majority of directors present and properly recorded in meeting minutes.

Legal Obligations

Legal Obligations

Statutory compliance and reporting obligations

Filing Obligations

Ensure timely filing of statutory returns and documents with ACRA

Ongoing
Various deadlines

Specific Requirements

Annual returns filed within deadline
Financial statements lodged when required
Changes in directors notified within 14 days
Change in registered office notified within 14 days
Substantial shareholders notifications

Record Keeping

Maintain proper books and records of company's affairs

Continuous
Ongoing

Specific Requirements

Keep accounting records that explain transactions
Maintain statutory registers and minute books
Preserve records for required retention periods
Ensure records are accessible for inspection
Keep records at registered office or notified location

Disclosure Requirements

Make required disclosures about company affairs and director interests

As required
When applicable

Specific Requirements

Disclose conflicts of interest to board
Notify changes in director particulars
File notifications of shareholdings
Disclose related party transactions
Report on compliance with listing rules (if applicable)

Solvency Duties

Ensure company can meet its obligations and avoid insolvent trading

Ongoing
Continuous monitoring

Specific Requirements

Monitor company's financial position regularly
Ensure company can pay debts as they fall due
Take action if company becomes insolvent
Avoid preferences and uncommercial transactions
Consider creditors' interests when company in financial difficulty

Compliance Monitoring

Ensure company complies with all applicable laws and regulations

Continuous
Ongoing

Specific Requirements

Monitor compliance with Companies Act
Ensure industry-specific regulations are followed
Implement adequate internal controls
Report regulatory breaches when required
Engage professional advisors when necessary

Appointment Process

Steps to appoint a new director

1

Check Eligibility

Verify candidate meets all eligibility requirements and is not disqualified

1 day
2

Board Resolution

Pass board resolution to appoint director (if authorized by articles)

1 day
3

Obtain Consent

Obtain written consent to act as director from the appointee

1 day
4

File with ACRA

Submit appointment notification to ACRA with required documents

Same day
5

Update Records

Update company registers and issue certificate of appointment

1 day
Ongoing Obligations

Ongoing Compliance

Key compliance requirements for directors

Board Meetings

Regular
As scheduled

Attend board meetings and participate in key decisions

Annual Returns

Annual
By anniversary date

Ensure company files annual returns with ACRA

Financial Statements

Annual
Within 5 months of year-end

Approve and file financial statements when required

Change Notifications

As needed
Within 14 days

Notify ACRA of changes in director particulars

Interest Declarations

As needed
Before transaction

Declare interests in company transactions

Continuing Education

Ongoing
Continuous

Stay updated on regulatory changes and best practices

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Frequently Asked Questions

What are the residency requirements for directors?
Every Singapore company must have at least one director who is ordinarily resident in Singapore (citizen, PR, or valid work pass holder).

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