2 directors? what are they responsible for?

samiam85

It seems that to start a ltd i need 2 people.

I can be the secretary and the director as long as i have another director?!

If i was to appoint a member of my family, what would they be responbsible for?

Would they be accountable if the business went tits up?

Even if i don't pay them anything?

Can i have a director that i do not pay? would they have to do anything?

Is using a member of family a good idea?

anything else i should know?

thanks alot

cledor

You can read about this subject here
http://www.companieshouse.gov.uk/about/gbhtml/gba1.shtml

Bean_Counter

cledor wrote: »

You can read about this subject here
http://www.companieshouse.gov.uk/about/gbhtml/gba1.shtml

I notice that Companies House still refer to Companies Act 1985. This has been superseded very recently in Companies Act 2006. Try googling that as directors responsibilities have been extended, albeit more or less in line with case law etc.

Lazy_Runner

Just because they are family and you trust them with your life, would you trust them with your money? What will become 'our' money when you are both directors of a firm. Never having run a business but surely you should see it as the firm's money to which you will be a shareholder. Successful companies do everything in the interest of the firm, not for the personal gain of the directors, however rewarding the situation might be.

The reason I mention this is that I am aware of a situation where two brothers were directors of a firm. I am not too clear on the story, but one of the brothers wanted to either be paid more or some of the assets to set up a rival firm. Not sure which at this stage. All got very nasty and now greedy brother has been cut off by the rest of the (extended) family.

inmypocketnottheirs

TBH it is better to use a 'corporate company secretary'. Ask whoever is incorporating the company how much they charge. Normally around £70 a year. There are changes ahead though, where it will not be necessary to have a company secretary. It is is an irrelevant position really.

I have a limited company, am the sole director, sole bank signatory and use a corporate secretarial service.

HTH