What is a company director?
Directors are appointed to manage a company on behalf of the Members.
Who can be a company director?
Almost anyone can be a director of a limited company, providing they are aged 16 or over, have not been declared bankrupt and are not legally disqualified from being a director.
How many directors do I need to set up a limited company?
The Companies Act 2006 requires a minimum of 1 natural person to act as a Director in order to form a private limited company, although the Articles may specify a higher minimum. There is no statutory limit to the number of directors permitted.
Do I have to live in the UK to become a director?
No, you do not have to be a UK resident to be a director of a limited company.
Can a director be another company?
Currently, a corporate body or company can be a director of another company, but it cannot be the only director – there must be at least one other director who is a ‘natural’ person. However, the ‘Small Business, Enterprise and Employment Act 2015’ outlawed the use of corporate entities as directors. The enforcement of this ban is currently on hold indefinitely, so any companies that have corporate directors appointed should monitor the state of this ban continuously.
Does a director have to be a shareholder in the company?
Directors are not required to own any shares in the company they run, but they are permitted to. Similarly, a shareholder is not required to be a director, but they are allowed to be.
What are the main responsibilities of a director?
Directors are responsible for running a company lawfully and trying to make it successful. They must follow the company's rules, make decisions for the company’s benefit, maintain records and undertake necessary filings (such as annual accounts and returns). They are bound to act in accordance with the Directors Duties, per sections 171 through 177 of the Companies Act 2006.
Can I appoint a new director after company formation?
New directors can be appointed any time after incorporation, in line with the Company’s articles of association (fellow directors may make the appointment, although sometimes this power is reserved only for the members).
Can I remove a director from my company?
A director can be removed from a company by a majority vote from the shareholders (or directors, if permitted by the articles), or disqualified by a court or governing body. If the terms of the director’s contract or a shareholders’ agreement are breached, a director may be entitled to damages.
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