A director is a legal requirement when a company in the UK is formed
If the company only has one director he/she:
- must be a natural person.
- must be at least 16 years old.
- must not be disqualified from being a director previously by a court.
- must not be an un-discharged bankrupt. This means that he or she must be going through the process of bankruptcy.
The second director or a company can be another limited company.
A director’s powers and duties are laid out in the company’s articles of association.
General duties of a director/shareholder
Directors have a duty to that promotes the success of the company. This means that they cannot have conflicting interests, must act with a certain degree of skill and in good faith.
Specific duties of a director/shareholder
Directors are in charge of running the day-to-day business of a company and their responsibilities can be wide-ranging. Typically these responsibilities:
- Ensuring that accounts are properly kept. This includes records of incomings and outgoings. Failure to do this can lead to imprisonment.
- Ensuring that company accounts and annual reports are submitted within the deadline.
- Ensuring that the company adheres to the Data Protection principles laid down by the Data Protection Act 1998.
- Ensuring a compulsory VAT registration is carried out when the company’s turnover reaches £85,000.
- Ensuring VAT payments are made within the set deadline to the HMRC.
- Ensuring all employment law and regulations are adhered to.
- Keeping a register of the directors. Failure to do so may result in a fine.
A director is an important part of any company and laws and regulations are in place to ensure that he/she acts in the interest of the company.
If you would like more information about Wisteria Formations and how they can assist you incorporate your business in timely manner
, then please contact their team on 020 8429 9245 or email [email protected]