Want to know how to resign as a director of a limited company? This blog explains how to do just that, including the steps a company must take when a director resigns. We also walk you through what is displayed at Companies House and the level of liability that exists after a resignation. What a…
Company directors are officially classed as office holders. Even if you’re a sole director of a small company and you run the business all by yourself, you are not automatically an employee of the company. The status of ‘employee’ is only afforded to directors under certain conditions, which we will discuss below. When is a…
The vast majority of companies in the UK are limited by shares. However, some organisations choose to be limited by guarantee. At some point during the life of a company, as a result of a change in direction or policy, it may become preferable to operate under the alternative setup. But can you convert a…
There are two methods of removing a company from the Companies House register: voluntary strike off and compulsory strike off. These are mutually exclusive and their use depends on the particular circumstances of a limited company. We will take a look below at the differences between these two limited company strike-off processes. What is voluntary…
Limited by shares companies must assign a nominal value to each of their shares during their incorporation (for example, £1, £0.50, £0.01, etc) The nominal value of shares represents the ‘limited liability’ of company members, which is the sum of money that shareholders are legally required to pay on each of their shares upon the…
Electronic signatures have been around for a number of years and have been applied to a variety of documents that previously required a physical ‘wet ink’ signature. But can an electronic signature alone be relied upon to process all corporate documentation? We will take a look below at some of the legalities and practicalities of…
If you are bankrupt, you cannot be a limited company director until the court lifts your financial restrictions and discharges you from your debts. This usually happens 12 months after the date of the bankruptcy order, but it can be longer. As an undischarged bankrupt, you are also prohibited from being involved in a limited…
To enjoy the benefits of limited liability, UK companies and the people who set up, control, and own them must provide certain information to Companies House. Most of this data is added to the public register of companies, which is available to everyone and can be accessed free of charge online. The company information that…
In the UK, Stamp Duty tax is payable on the transfer of existing shares. Calculated at a rate of 0.5% of the sale price of the shares, Stamp Duty (SD) must be paid to HMRC by the purchaser (the new shareholder) when: the price paid for shares is greater than £1000, and the sale is…
A dissolved company is one that has been closed and struck off the register at Companies House. When this happens, the company ceases to exist and is no longer able to trade. In certain circumstances, however, it is possible to restore a company by applying to Companies House for ‘administrative restoration’. If administrative restoration is…
A shareholder (‘member’) is an individual person or corporate body that holds shares in a company limited by shares. As a shareholder, your shareholdings represent the percentage of the business that you own and control. The bigger your shareholding, the more company profits you are entitled to, and the greater control you have in the…
Are company directors liable for the debts of the company? We explain the circumstances where directors of a limited company can be held responsible for its debts. While setting up a limited company entails a bit more in the way of formation than being a sole trader, as well as greater financial and admin responsibilities,…
