How to become a company director of a limited company
To become a Company Director you need to be appointed by the owners (shareholders) of the company. Your role as a Director is to run the business to the best of your ability and inline with the Companies Act 2006 regulations. For smaller limited companies the shareholder or shareholders usually appoint themselves as the directors.
If you're a sole trader you can call yourself a 'director' provided you don't mislead people into thinking you're a limited company.
Who can be a company director
You can be a company director of a limited company as long as you:
- Haven't got a court order that prevents you from being one
- Aren't an un-discharged bankrupt
- Aren't subject to UK government restrictions
- Are over 16 years old
Company director's duties and responsibilities
All the company's directors have joint responsibility to make sure the right documents are sent to Companies House in the right format and by a certain date. It's YOUR responsibility, even if you use an accountant to prepare your returns, and if the information isn't filed in time be prepared to face a fine!
More about the documents that need to be filed at Companies House
As well as getting the documents in on time, the Companies Act 2006 defines some very specific roles and responsibilities that all company directors must fulfil. As this is an Act of Parliament any company director who doesn't meet these expectations could be prosecuted.
More about company director duties under the Companies Act 2006