What do I need to do as a Company Director?

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What do I need to do as a Company Director?

As a company director of a limited company you will need to manage the day-to-day business activities and finances aswell as to ensure all statutory filing obligations are met. Directors must act lawfully and honestly and make decisions for the benefit of the company and its members.

Your duties & responsibilities as a company director are set out in the Companies Act 2006, the articles of association and any service contract that may have been put in place. The Companies Act 2006 outlines a statutory regime for directors’ duties, which consists of seven principle requirements:

  • To act within the powers granted to them in the articles of association.
  • To promote the success of the business.
  • To exercise independent judgement in all decision-making.
  • To use reasonable care, skill and diligence at all times.
  • To avoid or declare any conflict of interest.
  • To avoid the acceptance of benefits from 3rd parties or using their position to make private profits.
  • To declare an interest in a proposed transaction or arrangement with the company before it enters into such a transaction.

A company’s articles of association provides supplementary information about directors’ rights, duties, and powers as authorised by shareholders in accordance with the provisions of the Companies Act. These general management duties may include:

  • Making decisions for the benefit of the company and its owners, aswell as considering the interests of creditors in all decision-making.
  • Maintaining the company’s registered details & reporting changes to Companies House & HMRC.
  • Maintaining statutory company records and making them available for inspection.
  • Keeping accurate accounting records.
  • Monitoring the financial position of the company.
  • Taking all reasonable steps to minimise losses if the company is facing financial difficulty.
  • Filing annual accounts, an annual confirmation statement (previous the annual return), and Company Tax Returns by the given deadlines.
  • Paying corporation tax and any other tax liabilities by the given deadlines.
  • Arranging general meetings and board meetings.
  • Arranging and distributing minutes of meetings.
  • Filing copies of resolutions with Companies House.
  • Appointing solicitors, accountants and auditors, if and when required.
  • Issuing and/or transferring shares.
  • Complying with employment law if the company has employees.
  • Responsible for health and safety of all employees.
  • Appointing a company secretary, if required.

How many directors are required to register a limited company?

A minimum of one director is required to register a company. There is no limit to the number of directors a company appoints during or after incorporation, but there must always be at least one natural (human) director.

A single person can be the sole director and shareholder of a company. Alternatively, a company can have multiple directors and shareholders at the time of company formation and any time thereafter.

Who can and cannot be a company director?

A company director can be a person or a corporate entity, such as a group, partnership, organisation, charity, firm, another limited company, and any other form of corporate body. However, a company must always have a minimum of one natural director at all times.

  • Individuals must be at least 16 years old.
  • A director can also be a shareholder or the company secretary.
  • The company auditor cannot be a director.
  • An un-discharged bankrupt cannot be a director.
  • Any person who has been disqualified as the director of a company cannot be appointed to any other company whilst their ban is still in place.

What is the difference between a company director and a shareholder?

A shareholder owns all or part of a company. Directors are appointed by shareholders to manage all operational and financial aspects associated with running a company.

Can a director also be a company secretary?

Yes, a company director can also be the company secretary.

What is the difference between a director and a company secretary?

The burden of responsibility placed upon limited company directors is quite significant. For this reason, many directors appoint a company secretary to assist them with their statutory duties to reduce their workload to a manageable level.

 

Are directors’ details placed on public record?

Yes, the following directors’ details are placed on public record by Companies House:

Natural director

  • Title, full forename(s) and surname, including any former name(s).
  • Service address (residential or other).
  • Nationality.
  • Month and year of birth.
  • Occupation.
  • Appointment date.

Corporate director

  • Date of appointment.
  • Registered name and number of corporate director.
  • Registered office or principal address of corporate director.
  • Registration place of corporate director.

intelligentPA can help you become a Director and register your Limited Company today! We can also assist in some of your Director’s duties by filing your confirmation statement and other statutory filing.

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