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Governance Formalities for Sole Director Companies

Governance of Sole Director Companies

The same governance formalities apply to sole director companies as apply to all other companies. 

Directors owe certain duties to the company, the cornerstone of which is the regime set out in sections 172 to 177 of the Companies Act 2006. These include a duty to promote the success of the company, a duty to exercise reasonable care, skill and diligence and a duty to avoid conflicts of interest. These duties apply equally to sole director companies as to companies with many directors.

As there must be at least one natural person as a director, the provisions relating to corporate directors will not apply to sole director companies.

As with all other directors, a sole director must be at least 16 years old (section 157 Companies Act 2006), and there is no maximum age prescribed for directors. Likewise, the same prohibitions and disqualifications to acting as a director, such as bankruptcy, will apply to sole director companies.

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