Appointment of a Director

This month we continue our popular series of Company Secretary Factsheets, and tackle a major subject; the Appointment of Directors.

There are various terms used to describe directors, including ‘executive’, ‘non-executive’, ‘shadow’, and ‘associate’. The Factsheet first looks at these terms and what they actually mean. It then runs through the requirements of the Companies Acts in terms of the number / type of directors needed in a private limited company.

There is a checklist of practical issues that need to be addressed on appointment of a new director, including the all-important issue of Directors’ Service Contracts. Attention must be paid to the duration of the contract, as contracts of more than two years need shareholder approval.

Finally there is a very brief look at the tax position of company directors.

Types of directors
Number of directors / sole directors
Appointment of a director New Director – Checklist of practical issues
Directors’ service contracts
Duration of service contracts (and shareholders’ approval)
Tax Status of Directors

Company Secretary Factsheets are easy to use, step-by-step guides to the tasks commonly performed by the company secretary, or the individual acting in that role.