terminology

Question 1

Name of the formal process of forming a company ?

Answer 1

Incorporation

Question 2

Veil of incorporation ?

Answer 2

This distinguishes the company from it’s members

Question 3

Executive directors ?

Answer 3

Directors of the company who are involved in the day to day management of the company

Question 4

Non Executive directors ?

Answer 4

Not involved in the day to day management and are appointed from outside the company

Question 5

Nominee director ?

Answer 5

A person who is appointed by the board by a shareholder or group with a view to represent and safeguard their interests within the company

Question 6

Shadow director ?

Answer 6

Anyone other than a professional adviser eg. solicitor who will be treated as a director

Question 7

De facto director ?

Answer 7

A person who occupies the position of director of a company but has not been formally appointed but acts if they were the director

Question 8

Alternate director ?

Answer 8

A person who is appointed to act in place of a director when they are unable to act

eg. a director who goes on maternity need will be replaced by an alternative until they come back