The role of the company director is one of utmost importance in any company. This is because the company director is the only one who can perform certain tasks that no one else can. These tasks typically relate to the company’s general affairs. Directors are also usually tasked with making the most important business decisions, as well as monitoring officers’ activities. A director’s duties are divided into fiduciary and statutory duties; all duties in either category must be carried out to keep the company running at an optimal level.
However, according to the existing laws in Singapore, not everyone is allowed to be a company director. The laws specify certain classes of people to whom this ban applies. There are certain valid reasons for this.
People Not Allowed to Be Company Directors
One of the most important criteria for becoming a company director is that of being a natural person. This implies that a company director may not be a business entity or a company. Those who are not Singapore residents, including citizens, permanent residents, and those holding a valid work pass, may not take the position. People below 18 years old, who are not of sound mind, who are bankrupt, who have been convicted of fraud or other offenses related to corporate dishonesty, or who have been the director of a failed company are also barred from being company directors.