Your first responsibility is to promote the success of the company, including the obligation to foster relations with customers and suppliers. If the company gets into financial difficulty, you should also ensure that the company does not continue incurring additional liabilities when there is no reasonable prospect of avoiding insolvency – you should not try to ‘trade out of difficulty’. Doing this could constitute wrongful trading if you fail, and this could make you personally liable for the company’s debts. You must obtain specialist insolvency advice as soon as possible.
If there is a reasonable chance of saving the business, you will need to take the appropriate action – for example, negotiating new financing and working with your creditors to reach an amicable solution. And if there is not, you should instigate the appropriate insolvency proceedings.
Be aware that these liabilities apply even if you are only a part-time or non-executive director.