According to BusinessDictionary, company directors are responsible for determining and implementing the company’s policy. They derive their authority from the company’s articles of association and from corporate legislation. They act according to the resolutions made at meetings with other directors.
Company directors are the company’s agents, and they are capable of binding the company to valid contracts with third-parties, including buyers, suppliers, and lenders. They are the trustees of the company and not for individual stockholders. However, they are held personally liable for the results of actions they take that fall beyond the scope of their vested powers or that are deemed fraudulent, and stockholders are permitted to sue them for such actions. Moreover, company directors are individually and collectively liable for the company’s actions, including negligent acts.