A director’s responsibility and level of authority will be detailed in the company’s Articles of Association, (either the standard one or tailor made one specific to the company need). There are basic duties which directors of all companies need to be aware of. Sometimes in exceptional cases some directors may become personally liable under the law. So, the director should know his/her limits when taking decisions on behalf of the company
No,anyone from anywhere in the world can act a director of a UK company provided that he/she is not from a country which has been blaclisted by the foreign office.
New directors can be appointed any time after incorporation; in line with the Company’s articles of association (fellow directors may make the appointment, although sometimes this power is reserved only for the members).
A director can be removed from a company by a majority vote from the shareholders (or directors, if permitted by the articles), or disqualified by a court or governing body. If the terms of the director’s contract or a shareholders’ agreement are breached, a director may be entitled to damages
Directors are responsible for running a company lawfully and trying to make it successful. They must follow the company's rules, make decisions for the company’s benefit, maintain records and undertake necessary filings (such as annual accounts and returns). They are bound to act in accordance with the Directors Duties, per sections 171 through 177 of the Companies Act 2006
Directors are not required to own any shares in the company they run, but they are permitted to. Similarly, a shareholder is not required by law to be a director, but they can always choose to become one
Companies Act 2006 requires a minimum of 1 natural person to act as a Director in order to form a private limited company, although the Articles may specify a higher minimum. There is no statutory limit to the number of directors permitted.
Choosing a name is very important because in the future this can be a valuable asset for the company.
While choosing a name, you must ensure that:
You are not using an existing name or a name which is too identical to an existing one, e.g. Arthur Lt and Arthur & Co Ltd
You have the necessary permission to use some words whish are deemed sensitive. (Sensitive words)
You are not using a name which causes offence or imply criminal activity
The chosen name ends with either "limited" or "ltd" if they are to be a profit making organization.
At least 1 director & 1 secretary At least 1 shareholder ( any one of the above can be shareholder) To set the type od shares Needs to have an authorised and issued capital A registered Office Address
Private limited company
Public limited company
Company limited by Guarantee
Flat management company
To take advantage of the tax benefit. Limited Liability protects the owner of the limited company from personal loss. A limited company is a separate corporate entity and unlike self-employed or soletrader, its debt is not that of the individual owner. Image & Perception, for example a prepective employee will prefer to work in a limited company rather than for a sole trader
A limited company is a separate legal entity created by incorporation at Companies House. Once incorporated Companies House issue a certificate and company registration number. This becomes the company's ID so to speak. You can change the company's name at any time but you still keep the registered number. The profits, losses, assets and liabilities belong to the company.
The company is then owned by its members (the shareholders) and run by the managing director or directors. This gives the directors Limited Liabilities. If the company should fail the directors personal assets are protected. Because a company has a life of its own the business can continue to trade despite the resignation or death of any directors or shareholders. Other reasons for choosing a Limited company could include ownership of property, obtaining outside finance, taxation, status and protection from risk
After placing your order, we email you your memorandum and Article of Association and your invoice. Your incorporation request is lodged at Companies House automatically. You should get a reply within 4 hours from the time you apply for the company depending of course on the queue at Companies House. Your certificate of incorporation is emailed to you once Companies House approves your company's name.