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].