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What are the duties and responsibilities of a Director?

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

  • First and foremost, the director has statutory obligations set out in the Companies Act 2006, complying with the Financial and Services Act 2000 and the company’s Articles of Association when issuing shares.
  • The company’s bylaws are set in the Memorandum and articles of Association where the director’s responsibility are powers are listed. It is expected that these rules are followed accordingly.
  • Directors have a duty to always act in good faith and in the best interest of the company. They are expected to run the business successfully for the benefit of its members
  • While carrying out their duties with reasonable care and skill, directors are expected to hire professionals and specialist to deal with matters outside their remit.
  • Directors are expected to exercise independent judgement and making sure that there is no conflict of interest in the performance of their duty. Sometimes he will be asked to make a declaration of interest so that he is not giving the to vote on matters if there is a conflict of interest.
  • It is the director’s responsibility make disclosure of any personal interest he has in other businesses so that he does not at a later stage divert business to himself or other companies when it should have gone to this company.
  • He should not profit from his position as director to gain benefit or take bribe from others or act fraudulently to intentionally defraud stakeholders
  • There are instances where the law will hold the director personally liable when he acts recklessly in relation to  Health and Safety at Work Act 1974, Laws relating to the control and disposal of hazardous waste  or if he carries out trading with the knowledge that the company is insolvent.
  • Directors should act according the rules of the articles of association be able to only distribute the company’s profits after tax through taxable dividends.
Do I have to live in the UK to become a director?

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.

Can I appoint a new director after company formation?

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).

Can I remove a director from my company?

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

What are the main responsibilities of a director?

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

Does a director have to be a shareholder in the company?

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

How many directors do I need to set up a limited company?

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.

Can anyone be a company Director?
  • Anyone can be a director of a limited company except in the following:
  • You are below16
  • You have been undischarged bankrupt
  • Legally disqualified from being a director by court order.
  • You are the company auditor
Can I use any Company name ?

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.

What requirements do I need to meet to form a limited company?

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

What type of company I can set up?

Private limited company
Public limited company
Company limited by Guarantee
Flat management company

Why do I need to incorporate my 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

What is a Limited Company?

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

How does the website work?

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.

We have been in this business for over 21 years and we are not just a faceless web-based company which communicate only by email or charge you extra for calling us (using 0871 or 0870 numbers). Pick up your phone and call us, we will be happy to answer your queries or deal with any complaint...-- 
Off The Shelves :
Lincroft Associate is pleased to announce that from now on you can buy a ready-made company and start trading instantly.


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