Directors read this!

Posted on Posted by Malcolm Swallow

Directors run limited companies on behalf of the shareholders, who very kindly provided the dough to set up the venture that is now funding the directors lives, who may or may not be the same persons.


It is pretty obvious that directors have responsibility for ensuring the success of their company, and must also keep a beady eye on all the gumph that comes with running even a small operation in the UK. - areas such as health and safety, employment law, tax, annual accounts, financial management, fobbing off all the regulatory authorities who keep popping in.


The Companies Act 2006 requires company directors to act in a way which is most likely to promote the success of the business. (no brainer).


Every limited company must have at least one real person director. If a limited company has more than one director, other directors can be another company.


The shareholders appoint whom they want as directors at the AGM. But there are restrictions on candidates:-



 why be a director?

  • So you can tell your mates

  • You want to join the central management team and really be part of the guiding operation that takes the company forward

  • You’re fed up with the stuffed shirts messing it all up

  • Because you were asked

  • Shadow directors are listed in the Companies Act, and is a very fraught area as by definition a shadow is NOT an appointed director, so it’s someone’s ‘opinion’ that counts. But Shadows are as liable as real directors. Usually you find out you’re a shadow just as the manure finally touches the fan so why not be one officially ? - at least then you know why you can’t sleep any more. – SEE the end of this fascinating booklet for a real example of a Shadow happening. This is not teeeeeedious-lawyer junk!!

  • Even small companies need two directors to give continuity and breadth of skills at the top.

  • So the company Board looks more impressive

  • You get to go to directors gatherings/jollies/seminars

  • If you have several directors you can give each other impressive titles – Chairman, Finance Director, Chief Executive, Head of Deliverables Resource and Security Unit (warehouse!) etc..

  • So your employer can justify to themselves giving you more dough

  • It is a part of career progression

  • To enhance your own cv as it looks good

  • You become part of the public face of the company. People look to you to tell them what it’s all about

  • You give press interviews about your interesting company with authority.

  • Your colleagues will suddenly become deferential, but more importantly have a clearer sense of who’s in charge.

  • Even a small company might have only one director, who is not often in the office, -playing golf and yachting are soooo time-consuming – so a Production Director is appointed and a Business Development director, that way the destiny of the company is in safer hands


download the full guide here. No the link won't demand info from you, just help yourselves.


Any questions -email: 


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