Becoming a Director

Natalie1996

Hi,

Was just after some advice (advantages/disadvantages) to becoming a director at a young age when it's a family related business. I have done some research but finding it all quite confusing. Thank you in advance!

[Deleted User]

Director means many different things. Ultimately, it's just a job title and increasingly often a fairly lowly one.

What is it that you're aiming to achieve?

Sandtree

Are you talking a statutory director of a legal entity or just a job title?

Due to role title inflation its not necessarily that high a job title... at a previous client there were circa 8 CFOs and that was just in the UK business unit, many more in the global company... some CFOs actually reported into an FD or Deputy CFO.

Problems are generally going to depend on your plans... become a Finance Director at 17 and then apply to a role at PWC at 25 and they are unlikely to give your prior experience much credit as it'll look like you got the job because of nepotism not merit. Have a more sensible job title and slower progression and you may get more credit for it.

As a statutory director you have a few additional obligations to ensure the company does the right thing etc but they are relatively minor and in particular if the shareholders are all close family too.

Marcon

Natalie1996 said:

Hi,

Was just after some advice (advantages/disadvantages) to becoming a director at a young age when it's a family related business. I have done some research but finding it all quite confusing. Thank you in advance!

If you mean a statutory director (as in a director of a limited company), think hard before you agree. It might feel like a feather in your cap, but in truth it could be nothing but constant hassle (and legal responsibilities), especially if this is a family business.

Can you be a bit more precise about the research you've done and, particularly, what you are finding confusing? If you have specific concerns or areas of bemusement, it's much easier to try and answer those than respond with broad brush generalities.