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Responsibilities of a Limited Company Director
Who can be a Director of a Limited Company?
Anyone over the age of 16 can be a Director of a limited company, and as Limited Companies are their own legal entities, they too can become Directors of another Company. Please note that you must be at least 18 years of age to use our services.
Any Directors must not have been disqualified from acting as a company director and not be an undischarged bankrupt.
There are also no qualifications required to become a director.
As a Director, you are required to comply with the Companies Act 2006 and in relation to Companies House you would be responsible for ensuring that certain documents are filed at Companies House, HMRC, such as the annual accounts and annual returns. You are also responsible for ensuring that any changes to the company, such as its registered office, the resignation or appointment of directors, and changes to the articles of association are notified to Companies House within the required timescales. You may also have to provide them with copies of company resolutions and notify them of any charges on the company.
Your other general responsibilities, of course, are
(For Directors in specific industries, like banking, or in the charitable sector, there are additional responsibilities.)
- to make the business a success with determining the strategic objectives of the business and monitoring progress,
- follow the rules of your articles of association,
- decide on what’s best for your business (rather than you personally),
- avoid conflicts of interest and declare an interest in a proposed transaction
- keep your company records and accounts,
- file a tax return and pay your corporation tax.
For many companies, you would recruit or outsource some of these activities – but as a Director you are still legally responsible for them.
You can be fined, prosecuted or disqualified if you do not follow the rules.
The level of sanctions depends on the seriousness of the offence.
You have to ensure that everything is correct and your defence of it being someone else’s job will not be enough.
I-Support Formations - 1st July 2018