An important change in UK Company Law (as a result of the Companies Act 2006) comes into effect from 1 October 2010.
From this date it will no longer be legal for a company to have just a corporate director or directors, it must have at least one “natural person” acting as a director. This also applies even if the company has a natural person as its Company Secretary.
In UK law a company is in effect a legal person just the same as you and I (there are some subtle differences …but that is not important here!). A company therefore has its own independent identity and is accountable for its actions. As a result it is able to act as director (or Company Secretary) of another company. This important change in the law means that every company must have at least one natural person as a director, and cannot have all of its directors as other company’s (or corporates).
If a company is in default of these new provisions it will be subject to fines imposed by Companies House.
Insight Associates acts as Company Secretary to most of its clients and many other companies. If you would like to understand more about the above change, or other important changes brought about by the Companies Act 2006 we would be happy to help.
