Making a Director redundant

Making a Director redundant

Didn't find your answer?

We are considering the redundancy of a Director of the company. Are there any special considerations we have to make becuase of the status of the person as a director? (compensation for loss of office etc?)

We want to be reasonable - should we, after consultation, have to continue this route, what would be a suitable compensation package ?
Rich Miller

Replies (1)

Please login or register to join the discussion.

avatar
By listerramjet
14th Nov 2005 17:11

how do you make a director redundant?
A Director's role qua director is not an employment, so how do you make it redundant? logical extension is that all directors are redundant!

If you mean his service contract assuming he is also employed, then making that redundant does not stop him being a director. To remove him as director you will have to follow the provisions laid out in the articles of association.

The special consideration here is that you want to ensure that the decision is actioned effectively, and given that if it is not by his choice he may not choose to "come quietly".

Thanks (0)