A company director is someone who has the role of director for a limited company. This means that they have a number of obligations and responsibilities to Companies House. They are bound by the legal terms of the statutory framework of the Companies Act 2006, and they are responsible for managing all business activities.
All limited companies in the UK are required to have at least one registered company director by law.
Responsibilities:
A company director is responsible for legally running a company, and they must send all relevant information. They are responsible for filing a confirmation statement at least once per year, even if there have been no changes to the company within the review period. As of March 2024, a confirmation statement must also include an undertaking to state that all intended future activities of the company are lawful.
They are responsible for all company accounts, even if the company is currently dormant. A director is also responsible for ensuring that the registered address for the company is up to date.
A company director must provide Companies House with full details of the allotted shares of a company.
Companies House will also need to be informed of any charges made against the company, such as a mortgage. Details of these charges will be made available for public viewing on the company register.
They are also responsible for reporting any changes to the personal details of any of the company’s officers or any person with significant control over the company.
A company director can appoint an accountant to file and submit documents on their behalf, but they are ultimately the ones who are still legally responsible.
Directors Guarantee:
The director of a company is required to give a personal guarantee when purchasing a property with the aid of a mortgage from a lender.
Prior to signing a deed, a company director should always seek independent legal advice so that they are well versed on the implications of providing a personal guarantee.
For more information on directors guarantee implications, visit https://www.samconveyancing.co.uk/news/conveyancing/directors-guarantee-the-risks-of-personal-guarantees-by-directors-9999.
In the event that a company becomes insolvent, is liquidated or misses a mortgage payment, a company director will then become legally liable for the payment themselves, or they may even be asked to repay the loan in its entirety. Therefore the implications of personal guarantees should not be taken lightly.
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