Who is a Director?
A company of any kind or a body incorporated under the law can run only when the company has a director or directors. A director can work full-time or could be a non-executive director. The roles of the director of any other kind of incorporated body could be different as per the name or the designation attached to the person’s name.
The primary role of any director is to make sure that all day-to-day activities of the company or the incorporated body are running efficiently while maintaining the bigger picture. The role and the job of a director are quite complex and the person is remunerated accordingly by way of wages.
The number of directors for various kinds of companies is fixed at different numbers.
What is the Nature of a Director’s Work in a Company?
A director is an executive of the company and is one of the most important people. The director would have full responsibility for the company’s working. However, if the company has an executive chairman, then the work and responsibilities of the director may be diminished accordingly.
Whether an executive or non-executive director, all directors are office-holders and are going to hold designated offices in the company. Their nature of work is usually taking charge of the company and deciding what the company will do. Other than this, the company’s daily activities will be monitored by them and may be changed as they deem fit.
Furthermore, there are various other kinds of responsibilities that a director will need to attend to, depending on their position and designation in the company.
Are there different types of Directors?
Yes, there are various types of directors. Depending on the size of the company or the organization, the roles and the duties may differ according to the name given with the word “director.” Here are the various types of directors you may find under the company law of UK:
- Managing the company
- Entering into contracts on behalf of the company
- Hiring employees and staff.
- Firing employees and staff.
- Looking after the business and the company’s assets.
Who can be Appointed as a Director?
The Companies Act 2006 demands every registered and limited company to have at least one director in the company. Other than this, the act also suggests that for smaller companies, the director and the shareholders of the company can be the same people.
There are certain restrictions and rules to be followed when a director is being appointed for a company. Here are the rules as per the 2006 Companies Act:
Who cannot be a Director?
With the given rules of the 2006 Companies Act, there are some people who cannot be a company’s director:
- Any person below the age of 16.
- A person disqualified to be a director by the company’s articles of association.
- The company’s auditor.
How to Appoint a Director in a Company?
Here is how the directors of a company are appointed:
Shareholders and their opinions on the matters of who should be a director are important.
Where is the Process of the Appointment of Directors Recorded?
Records of everything and every meeting are to maintained by the companies mandatorily. As for the recording procedure and the appointment of directors, such records should be clearly and legibly mentioned in the AOA (articles of association) of the company. Any change in the directors or in the name of the directors should also be recorded in the AOA.