Singapore Company Directors:
Requirements, Duties, and Liabilities
Under the Singapore Companies Act, every company must appoint at least one director who is responsible for overseeing the company’s operations and ensuring it complies with all statutory obligations. Directors are accountable for decisions made on behalf of the company, and their role carries both authority and legal responsibilities.
This guide explains the requirements, duties, and liabilities of company directors for Singapore private limited companies. It offers essential knowledge for anyone planning to incorporate or manage a Singapore company.
Table of Contents
Key Takeaways about Singapore Company Directors
Key Requirements for Singapore Company Directors
Powers of a Singapore Company Director
Duties and Responsibilities of a Singapore Company Director
Risks and Liabilities of a Company Director
How Is a Company Director Appointed in Singapore?
How to Remove a Director of a Singapore Company?
Frequently Asked Questions (FAQs)
Key Takeaways about Singapore Company Directors
Resident director: Every company needs at least one Singapore-resident director (citizen, PR, or eligible pass holder).
Eligibility: Directors must be natural persons, 18+, with full legal capacity; corporate directors are not allowed.
Director Powers: Directors manage daily operations, but major actions (e.g. share issues, constitution changes, winding up) need shareholders' approval.
Duties: Company Directors must act in good faith, exercise care, avoid conflicts, and ensure compliance with filings and financial reporting.
Liability: Breaches can lead to fines, imprisonment, disqualification, or personal liability for wrongful or insolvent trading.
Appointment: Directors are appointed at incorporation or later via board/shareholder resolution and must be filed with ACRA within 14 days. A resident director must always be maintained.
Key Requirements for Singapore Company Directors
Who Can Be a Singapore Company Director?
Be at least 18 years old
Be a natural person (corporate directors are not permitted in Singapore)
Have full legal capacity and not be disqualified (for example, due to bankruptcy or criminal convictions)
Local Director Legal Requirement
There is no limit on the number of directors a company may appoint. However, the law requires that at least one director must be ordinarily resident in Singapore. This means the person must be a Singapore citizen, permanent resident, or a foreigner holding an appropriate pass (such as an EntrePass, Employment Pass, or Dependant’s Pass) with a local residential address.
For foreign entrepreneurs, this requirement is often the main hurdle to incorporation. If you do not have a local contact to act as your resident director, you can use our Nominee Director service to meet this legal obligation. For a detailed overview, see our complete Nominee Director Guide.
Powers of a Singapore Company Director
Examples of decisions
that directors may make
independently
Directors are entrusted with broad authority to manage the company on behalf of its shareholders. Their powers generally include:
- Making business and operational decisions.
- Entering into contracts and binding the company legally.
- Managing company funds and property.
- Hiring employees and overseeing company policies.
For example, a director may sign contracts with suppliers on behalf of the company or approve the opening of a corporate bank account.
Examples of decisions
that require shareholder
approval
However, director powers are not unlimited. Certain major decisions require shareholder approval, such as:
- Changing the company’s constitution.
- Issuing new shares or altering share capital.
- Approving mergers, acquisitions, or winding up the company.
In practice, this means directors can run the day-to-day business, but shareholders retain ultimate control over fundamental matters. Directors must always act within the scope of the company’s constitution, the Companies Act, and in the best interests of the company.
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Duties and Responsibilities of a Singapore Company Director
Fiduciary Duties of a Director
As key decision-makers, directors have a legal and ethical obligation to safeguard the financial health and long-term interests of the company. Their fiduciary duties include:
- Act in good faith in the best interests of the company
- Exercise care and diligence when making decisions
- Avoid conflicts of interest
- Do not misuse power or company information
Statutory Duties of a Director
In addition to fiduciary responsibilities, directors must also comply with statutory obligations as set out in the Companies Act:
- Ensure compliance with the Companies Act, including filing annual returns, maintaining statutory registers, and holding shareholder meetings.
- Maintain proper accounts and ensure that accurate financial statements are prepared.
- Prevent insolvent trading, meaning they must not allow the company to continue business if it cannot pay its debts.
- Disclose any personal interest in company transactions.
Penalties for Non-Compliance
Civil Penalties for Breach of Director’s Duties
If a director breaches any of the core fiduciary duties, the company may pursue legal action in civil court. Remedies may include:
- Requiring the director to compensate the company for any losses suffered;
- Recovering any profits or benefits obtained by the director as a result of the breach;
- Invalidating any decisions or transactions made while the director was in breach of duty.
Criminal Penalties for Breach of Director’s Duties
In serious cases, a director may also face criminal charges. Penalties can include:
- A fine of up to S$5,000, and/or
- Imprisonment for up to 1 year.
Risks and Liabilities of a Company Director
Civil liability
Criminal liability
Disqualification
Personal liability for debts
For example, directors who ignore annual filing obligations can face both financial penalties and disqualification. Similarly, approving business decisions that put the company into debt when it is already insolvent can expose directors to personal claims from creditors.
Understanding these risks highlights why directors must act diligently and in compliance with the law.
How Is a Company Director Appointed in Singapore?
Appointment During Company Incorporation
Appointment After Incorporation
Step 1
Review the Company Constitution
Step 2
Obtain Director’s Consent
Step 3
Pass a Board or Shareholder Resolution
Step 4
File with ACRA
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How to Remove a Director of a Singapore Company?
Voluntary Resignation
Removal by Shareholders
Shareholders passing an ordinary resolution to remove the director, provided the constitution does not state otherwise.
In either of these cases, the following rules applies:
- The company must then file a notice with ACRA within 14 days to update its records.
- If the departing director is the only local resident director, the company must immediately appoint a replacement who satisfies the local director requirement. ACRA will not allow a company to be left without a resident director at any time.
- It is important to note that removing a director does not release them from liability for acts carried out while they were in office.
Automatic Disqualification of Directors
Under the Singapore Companies Act, certain individuals are automatically disqualified from acting as company directors. Disqualification applies if a person:
- Is an undischarged bankrupt.
- Has been convicted of offenses involving fraud, dishonesty, or corruption.
- Has been convicted of three or more filing-related offenses under the Companies Act within the past five years.
- Has been disqualified by a court order or by ACRA for misconduct or breach of duties.
A disqualified individual cannot serve as a director unless permission is granted by the court or relevant authority.
Our Corporate Services
At CorporateServices.com, experienced and ACRA-approved teams provide end-to-end support for entrepreneurs setting up and managing their companies in Singapore. Services include:
- Company incorporation with full compliance support.
- Ongoing corporate administration, including accounting, tax, and statutory filings.
- Nominee Director service for foreign entrepreneurs who need a trusted local resident director to meet regulatory requirements.
If you are considering setting up a Singapore company, review our Incorporation Packages to see how we can support your business from day one.

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