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Company Director.....or not

I have come accross a company that wish to purchase from a client. Everything is in order in terms of credit checking but I note our client has received correspondance from a "director" dating back two three months.

The person is definately in the employ of the company however he is not appointed as a director with Companies House, the only other director is a non UK resident (out client has spoken to the appointed director too).

I can't seem to find a definative answer, but it is wrong to call someone a "director" when they have not been appointed with Companies House for some months? Is there a time limit on this and are there any penalties? The form does say "date of appointment" so in theory it could be backdated to reflect the relevant board meeting.

All answers appreciated!!

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It is quite common in industry to have job titles such as "Director of .............". These people are legally directors under the Companies Act but given a fancy title to boost their egos. As far as I am aware this is not illegal.

Is it possible this has happened in your example?

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it is possible

I believe that they are meant to be formally appointed, the title is Commercial Director.

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Before I lie down and recover from my other battle in this forum

I would suggest that those who have the title "Director" would be considered as a "Shadow Director" under company law and thus subject to all the same provision as a formally appointed director.

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thanks

Thanks both for your opinions. Is there actually a deadline on how far back the forms can be backdated?

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s.167 CA 2006: Within the period of 14 days of a personal becoming a director you will need to notify the Companies House of the appointment. However, I'm not too sure if all the persons titled 'director' need to be members of the Board.

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i used to work for a high street bank and we had all sorts of dim-wits with titles such as Area Director and Sales Director. I can assure you they were very, very far from the proverbial big tree in London and were no more Directors in the Companies House sense than the much harder working Cashiers.

Was funny that they used to have self titled 'board' meetings which used to make us underlings chortle. 

Of course this relates to an international PLC, in a small limited company it may be harder to determine actual CH Director responsibilities as per Steves comments. 

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Grammar and spelling is important.

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Not sure if that comment was aimed at me Fred, however it truly amazes me how someone can find the time to be so destructive for pleasure.

What if the person you aimed that at had a disability? Does it make you feel good, strong and powerful? 

For the record in my haste to help the OP I was typing in an airport departure lounge on an HTC One S which while it is a truly incredible piece of kit, is no substitute for a laptop.

Anyway, typo's or grammar aside I hope my real life experience comment helped, but to be honest i'm going to stop bothering with this forum if it is policed by people like you.

 

Ken

 

Typed on an HTC in the back of a taxi on my way home.

 

 

 

 

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No, not at you and I hope that you continue to respond.  If I was the OP and asking for assistance I would try and write something that made sense in the same way that I would when writing to clients.

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I worked for a bank too..

As a cashier . Failed in that, thank god cos now I would be totally unemployable.

Now I am a director- a proper one!

Still 'face' any bank notes I pay in to HSBC though!

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Answer as per article

You might like to refer to my article which covers Co House requirements for notification of directors appointments. The link is below -

http://www.accountingweb.co.uk/topic/business/expert-guide-directors-appointments-registrations-and-removals/462510 

Look under the para headed 'Notification to Companies House' - you'll find the answer there.

 

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