Director? You're a Director, wow!

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Overview

Directors run limited companies on behalf of the shareholders, 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).


They technically run the risk of penalties if they don't ensure that key information is sent to Companies House/HMRC et al on time.


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. A public limited company (or plc) must have at least two real directors. Why not real? Because you can hide the identity of persons linked to a company in certain circumstances, or it might be because a syndicate of three companies has a joint venture company and they each have a directorship. In practice it means they can send any loafer to the jv Board meetings as they are acting on behalf of the directorship of their own limited company.


Every director should have their own current copy of the Memorandum and Articles of the company as they should always have regard to their powers as limited within the Articles. Failure to understand these is both silly and could be personally expensive. Ignorance reveals stupidity but not constitutes a defence!