According to the Companies Act 2006, what is one of the responsibilities of directors?

Under the Companies Act 2006, one of the key responsibilities of directors is to ensure that proper accounting records are maintained. This requirement is crucial for a number of reasons. Firstly, maintaining accurate and up-to-date accounting records allows a company to comply with statutory obligations, providing transparency and accountability in its financial dealings. Proper financial records are essential for preparing financial statements that reflect the true financial position of the company, which is vital for shareholders, investors, and regulators.

In addition, proper accounting records are fundamental for the effective management of the business, as they provide critical information that directors need to make informed strategic decisions. Good record-keeping helps to prevent financial mismanagement and ensures that the company can provide evidence of its financial transactions when needed.

The other options, while they may relate to responsibilities within a company, do not reflect the specific duties enshrined in the Companies Act 2006 regarding the accounting records. The act emphasizes financial record-keeping as a primary responsibility of directors, distinguishing it as a legal obligation rather than just a managerial task.