What Should You Consider When Appointing a New Company Director in the UK?

What Should You Consider When Appointing a New Company Director in the UK?

If you are setting up a private limited company in the United Kingdom, then you will need to appoint a director. There is no restriction to the total number of directors that you can have although you do have to name at least one person to fill this roll. Any new directors that you may want to add can be appointed any time after you form your company, provided company members approve.

Once you have chosen someone to run your business, you will use Form AP01 to appoint them as director. You can complete this form online and submit it directly to Companies House on the internet or you can fill out the form and send it post instead. If you are using a company formations agent, he or she can also fill out this information and submit it for you.

In order to appoint a new company director, there are a few things that you have to submit to Companies House. You will need to provide the date of the new appointment as well as the full legal name of your new director. If the person has used any other names for business purposes over the past 20 years, this information must also be provided. You also need the director’s nationality, date of birth and any business occupation that they may possess. New directors must also provide their service and residential address.

Business occupation can be company director or something similar and you can leave this section blank. You do not have to provide details of the director’s past occupation and all types of people can be named as limited company directors, including professionals and non professionals.

Note that if your limited company only has one director then you must first appoint your new director before removing the old one. Your company cannot operate without a director for even a day so be sure that you have your new appointment in place before you remove a single director from your company. You can appoint corporate directors to your company but you should also note that you are required to have at least one human director appointed. A corporate entity cannot be your only director, even while you are in the process of appointing a new one.

A company director can typically be anyone who is over the age of 16. You can appoint any person that you want, with a few minor exceptions. You cannot appoint a director who has previously been disqualified or does not have the requirements to be named director. You also cannot choose someone who is in an undischarged bankruptcy, anyone who is also acting as the auditor for your company and anyone who may not be qualified by provisions in your company’s Articles of Association.

Your director does not necessary have to be a shareholder in your company, although they can be both. There are many cases in which shareholders in a company also act as that company’s director, but your director is under absolutely no obligation to also be an owner in your limited company.

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