Company Director | 121CompanyFormation.co.uk

The director of a limited company has certain responsibilities and duties and must be eligible to act in this role.

A limited company must have at least one director who can be either an individual or a corporate entity and, in the case of an individual, they must:
 
  •   Be over 16 years of age
  •   Not have a criminal record
  •   Not been declared insolvent or faced bankruptcy proceedings
  •   Not appear on the disqualified directors register at Companies House
  •   Not also act as the company’s auditor
There are no restrictions as to how many directors a company can have. New directors can be appointed at any time

Certain information is required is required for each director:
 
  •   Full name
  •   Date of birth
  •   Place of birth (nationality)
  •   Occupation (although ‘Director’ will suffice)
  •   Residential address
  •   Service/correspondence address if different
  •   Date of appointment as a director

For every corporate director, information required includes
 
  •   Company registration number and corporate name
  •   The registered office address
  •   Whether or not the director is an EEA company
  •   The name of the authorised signatory
  •   For a non-EEA company, please provide the details of the legal form of the corporate body and the law by which it is governed
  •   The number of shares available.
Existing directors can resign at any time without the necessity to provide a reason for this on Companies house documentation.

Responsibilities and duties of a director

A director of a company, who may or may not also be a shareholder of that company, is legally responsible for running the company and managing its operations. This includes considering both its day to day activities and the company’s vision and longer term strategic plan in an ongoing effort to promote the company’s success.

A director is also responsible for ensuring that statutory information is submitted to Companies House on time and that other documentation is maintained. This includes:
  •   Filing the annual confirmation statement
  •   Filing the annual financial accounts
  •   Reporting any changes to the company’s registered office, officers, shareholders, charges, persons with significant control, changes to the accounting period
  •   Recording minutes of board meetings
A director is expected to act in the best interests of the company at all times and, to that end, must:
 

  •   Not exceed the power or level of control given by the shareholders of the company
  •   Not misuse the property of the company
  •   Always act in accordance with the company’s values, mission and vision and its constitution as defined in the articles of association
  •   Abide by any joint venture undertakings and shareholder agreements
  •   Avoid any conflicts of interest
  •   Make unbiased decisions and apply independent judgement
  •   Act in a way that shows diligence and consideration for the company’s constitution, reputation and success

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