Number of Directors
When you first incorporate a company you must appoint the directors of the company. Their details are inserted in the Form IN01 which must be submitted to Companies House. The Form IN01 includes detail such as the directors’ names, country of residence, nationality, date of birth and business occupation. An address must be provided to the Companies Registry for service of any necessary documents.
- When a ‘private limited company’ is incorporated it must have at least one director.
- When a ‘public limited company’ is incorporated it must have at least two directors.
Every company must have at least one director who is a ‘natural person’. This means that at least of one of the company’s directors must be an individual rather than a corporation appointed to act as a director. Generally, all company directors must be over the age of 16.
Who are Company Directors?
There are two different types of company directors these are:-
- executive directors; and
- non-executive directors.
The board of executive directors is the type most people are familiar with. These are the people who take care of the business of the company on a day to day basis. Members of the board of directors could include the executive director of the company or a finance director or a marketing director or a director in charge of any other area of the business of the company.
Non-executive directors do not work for the company each day and may only meet once a month or less. Their main role is to ensure that the company is run by the executive directors to an appropriate standard, to look after the ‘corporate governance’ of the company.
Not every company has a board of non-executive directors, it is usually the larger private companies and public companies which will appoint a non-executive board to work alongside the board of executive directors.
Other types of Directors
Individuals can become ‘de-facto’ directors as the term ‘director’ includes any person acting as a director whatever name they are called. Therefore, if the person is recognised as a director by his functions and authority and the power he exercises in the company then he will be considered a director whether formally appoint as such or not.
Finally, individuals can also be ‘shadow directors’. This is a person with whose directions or instructions the directors of the company are accustomed to act.
For more information on:
- Duties of Directors
- Success of the Company
- Exercise of Reasonable Care and Skill
- When you cease to be Director