A Guide to Being a UK Limited Company Director
The following guide is designed to help you understand the role of a company director for a UK limited company.
It is possible to appoint both corporate entities and physical people as directors of a UK company; however the Companies Act 2006 requires at least one physical person to be appointed at all times.
The company directors are appointed by the members or subscribers to run the company on their behalf. The director of the company does not have to be resident in the UK or if you are appointing a corporate director they do not have to be a UK registered entity.
What are the restrictions on appointing a company director?
Aged 16 Or Over
The 2006 Companies Act established a minimum age limit of 16 for natural directors.
No Disqualifications
The person appointed must not have been disqualified from acting as a director by a court.
Not Bankrupt
If a person is an un-discharged bankrupt they are prohibited from becoming a director of a UK limited company.
What are the responsibilities of a company director?
When appointed in the position of director you are responsible for the day to day business activities and to ensure all of the statutory documents are filled correctly and on time. These documents include the Confirmation Statement, accounts, changes to officers within the company and changes to the registered office address. If there is a secretary appointed for your company then they will often assist with the filing of the documents however the directors still hold the legal responsibilities to ensure the documents are filed.
A director can be prosecuted by Companies House if they have failed to ensure the documents are filed on time or if their actions have been deemed to be illegal or irresponsible. In this situation they may pursue legal action against the company director who can be held responsible for the company debts if it is believed they have allowed the company to continue trading when the company has, or is likely to become insolvent. A court may also disqualify the person form acting as a director for any company, this decision can only be made by the court and not Companies House.