The position of Director brings both rewards and responsibilities upon an individual.
Whether you are appointed to the Board of the Company you work for, or you are involved in establishing a new business and take on the role of director, you will feel a sense of achievement.
However the office of director should not be accepted lightly. It carries with it a number of duties and responsibilities. We summarise these complex provisions below, but if you need any advice that is more specific to your circumstances, do call us direct on: 01332 813380
Companies
You can undertake business in the UK as either:
– an unincorporated entity, ie a sole trader or a partnership or
– an incorporated body.
An incorporated business is normally referred to as a company. Although there are limited liability partnerships and unlimited companies the vast majority of companies are limited by shares. This means the liability of shareholders is limited to the value of their share capital (including any unpaid).
A limited company can be a private or public company. A public company must include ‘public’ or ‘plc’ in its name and can offer shares to the public.
The responsibilities and penalties for non-compliance of duties are more onerous if you are a director of a public company.
Directors
When you are appointed a director of a company you become an officer with extensive legal responsibilities. For a director of an incorporated body, the Companies Act 2006 sets out a statement of your general duties. This statement codifies the existing
