If you are planning to form a company in the UK, you will hear the word director being kicked around quite a bit. Simply put, a director is responsible for many of the day to day operations of your company and for ensuring that your company fulfills all of its legal obligations. Directors are held responsible if and when a company fails to meet its legal obligations. Directors are tasked with ensuring that all necessary documents are filled out properly and delivered to Companies House as required under the Company Act.
Becoming a director is a fairly straight forward process, which can be done online at Companies House or on a site like 1stformations.co.uk.
Your company director will also determine the policies for your company and will be required to sign for any changes that you or others may want to make to your company constitution. In private limited companies, it is the director who must decide who may or may not own shares in the company, as well.
Nearly anyone can be named as a director in your company, with just a few exceptions. The director is required to be no younger than 16 years of age and he or she cannot have been removed as director of another company for any reason. He or she must not be in an undischarged bankruptcy. It is up to the members of the company to appoint the director or directors. A company can have more than one director, up to an unlimited number in many cases, but there must be at least one and this director can also be an owner or a shareholder in the company.
Limited companies in the UK are no longer required to have separate company secretaries, although many do choose to appoint a secretary as this is the person who will sign many documents related to running the company. The company secretary can also be the director and this is the option that is chosen by many companies, particularly those that are just starting out and smaller businesses who may simply not have the funding available to appoint a director as well as a secretary. There are no rules stating that these two people cannot be the same person or you could have your company director or directors assume all of the tasks that are typically done by the company secretary.
Choosing a company director does not have to be a difficult task. Ensure that the person or persons are all over the age of 16 and then simply consider the tasks that he or she will be responsible for carrying out. You want someone that you can trust to handle the daily operations of your business and someone that you can rely on to file all of your legally required paperwork with Companies House on time. Not getting paperwork filed on time could cause you to incur a fee or penalty, so choose a company director that you can trust to handle these tasks as they are required to be handled. You can appoint anyone that you want as company director provided they meet all of the requirements for company director set forth by Companies House.