Directors (Procedure to incorporate)- FS Flashcards
(8 cards)
What is the minimum number of directors required for a private limited company under the Companies Act 2006?
A private limited company must have at least one director, and that director must be a natural person, as required by Section 155(1) of the Companies Act 2006.
What is meant by a “natural person” in the context of company directorships?
A natural person is a human being, as opposed to a legal person such as a company.
At what minimum age can an individual legally be appointed as a director of a company?
An individual must be at least 16 years old to be legally eligible to act as a director.
Can a company serve as the sole director of another company?
No. Under Section 155(1), a company must have at least one director who is a natural person; a company alone cannot serve as the only director.
What legal restrictions can prevent someone from becoming a company director?
An individual is not eligible to be a director if they are under 16 years old or have been legally disqualified from serving as a director.
What are the core responsibilities of company directors under the Companies Act 2006?
Directors are legally responsible for managing the company, including ensuring that company accounts and reports are properly prepared and filed.
What is the minimum number of directors required for a public limited company under the Companies Act 2006?
A public limited company must have a minimum of two directors, as required by Section 154(2) of the Companies Act 2006.
Can shareholders appoint themselves or others as directors of the company at incorporation?
Yes. Shareholders can appoint eligible individuals as directors during incorporation, as long as the appointees meet the legal requirements (e.g., being a natural person and at least 16 years old).
