The deadline is approaching for every company to have at least one director who is an individual not a corporation.
In the past it was common for subsidiary companies of a group of companies to have just one director and for that director to be a corporation.
Under the Companies Act 2006 this is no longer allowed; every company must have at least one director who is a "natural person" - that is, an individual human being, not a corporate entity.
However transitional provisions gave companies with a sole corporate director a period of grace to appoint an individual as a director.
That period of grace expires on 30th September 2010, and after that date any company that does not have at least one individual 'natural person' director, will be liable to a fine of £5,000 plus a daily default fine.
"Clearly any company in this situation must act quickly and take advice as to the formalities required to appoint an additional or replacement director," said company law expert Simon Wilson of Ward Gethin solicitors.
This article aims to supply general information, but it is not intended to constitute advice. Every effort is made to ensure that the law referred to is correct at the date of publication and to avoid any statement which may mislead. However, no duty of care is assumed to any person and no liability is accepted for any omission or inaccuracy. Always seek our specific advice.
