Companies to Appoint a Natural Director by 1 October 2010

As has been mentioned in a previous briefing, any new companies must now have at least one director who is a natural person. The relevant provisions are contained in the Companies Act 2006.

Specifically, companies that were incorporated prior to 8 November 2006 were given a grace period within which to appoint a natural director. Therefore those companies that only have corporate directors, and which were incorporated prior to 8 November 2006, must now ensure that they appoint a natural person as director. The grace period afforded to those companies expires on 1 October 2010.

Failure to so appoint a natural director can mean that companies (and the directors in default) could be subject to fines of up to £5,000 with the possibility of additional daily fines being added.

If you have any queries regarding the process of appointing a director in order to comply with the Companies Act provisons, then we would be happy to assist.

For more information please contact Corra Irwin, Graham Watson or Andrew Arnott or telephone 01463 239393.

Disclaimer: The information in this publication is based on our current understanding of the law. It has been produced for information purposes only. Professional advice should always be sought before taking any action.

Macleod & MacCallum cannot take any responsibility for loss incurred through acting or failing to act on the basis of anything contained in this publication.