Non-Executive Directors Also Bear Legal Responsibilities (Part 1)
- Equal Legal Status
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- Under the Companies Act 2016, SSM does not distinguish between Executive Directors and Non-Executive Directors
- Once appointed as a Director, you are subject to the same legal responsibilities
- Investors Should Be Cautious
- If you are merely an investor, do not easily agree to become a nominee director
- Being a shareholder alone does not automatically carry the statutory duties of a director
- Potential Risks
- Once you become a director, even if you are not involved in the company's daily operations
- You may still be held responsible if the company encounters legal or compliance issues
- Statutory Duties Cannot Be Avoided
- Under Sections 210 to 234 of the Companies Act 2016
- Directors' duties are statutory obligations
- A director cannot avoid responsibility by claiming that they were unaware of the matter or were not involved in the decision-making process