The directors of a company are responsible for the management of the company. They run it on a day to day basis and receive a salary. It is their duty to manage the company on behalf of the shareholders. Shareholders have the final say when appointing directors.
When two or three people start a company together, they often see themselves as partners in the business. Usually, they will allocate shares to themselves and appoint themselves as directors. However, they should always be aware of the different roles of directors and shareholders.
Many large companies issue shares to directors and key employees, as part of a bonus package. Some companies insist that their directors buy shares in the companies they manage. Share ownership is intended to align directors’ interests with that of their employers; the other shareholders.
Anyone can be a director subject to the following:
Companies House needs the following information about each director:
Companies House will publish an address for a director, on their web site. Publication enables official notices and correspondence to be sent to directors. However, publication means that a director’s address is no longer private. In order to allow directors to retain their privacy, Companies House will also accept a service address. It is the service address that will be published. We offer directors a FREE service address, if their Company is using our Registered Service.
Companies are jointly owned by their shareholders, who are also known as members. A shareholder’s stake in a company is represented by the number of shares (units of ownership) he owns.
Unless sanctions apply, almost anyone has the legal capacity to be a shareholder in a UK registered limited company. Individuals, trusts, partnerships, other corporate bodies and Governments, wherever resident, can be shareholders.
The first shareholders are the subscribers to the company’s memorandum of association. They agree to buy the number of shares allocated to them.
And, to deal with the absence of a signature, the answers to 3 authentication questions previously set out.
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