Can you own a company without being a director?

Shareholders and directors have two completely different roles in a company. The shareholders (also called members) own the company by owning its shares and the directors manage it. Unless the articles say so (and most do not) a director does not need to be a shareholder and a shareholder has no right to be a director.

Can a person be director of multiple companies?

Law permits a person to be a Director of more than one company. Section 165(1) of the Act provides that a person can hold maximum 20 directorships at a point of time which also includes alternative directorship. While calculating the directorship, the directorship in a dormant company should not be included.

What happens when a company has no director?

When a company finds it has no directors it is in breach of the Companies Act 2006, which requires a private limited company to have at least one director and a public limited company to have a minimum of two. In such cases, any shareholder can request that a general meeting is held for a new director to be appointed.

Can a director of a company work in another company?

Yes, it is possible. A person can be director in one company and employee in other company. There is no provision in Companies Act, 2013 that prohibits the same. There are many people who are in employment elsewhere and become director in their own company.

Can a director of a company be held responsible?

You can only be held responsible for things that happened (or did not happen) during the time of your directorship. As long as you did not act outside of the law whilst in your post as director, you are free to walk away from the company for good.

Can a director of a limited company get personal guarantee?

While limited liability does offer a level of protection for the directors of limited companies, there are some exceptions to this. The main one is if you have signed a personal guarantee for a company loan, credit card, overdraft, or any other finance agreement.

Can a director walk away from a company?

At this point your liabilities are over as far as the company is concerned. You can only be held responsible for things that happened (or did not happen) during the time of your directorship. As long as you did not act outside of the law whilst in your post as director, you are free to walk away from the company for good.

What happens if I resign as a director of a limited company?

In the majority of cases, the simple answer is: nothing! This is because of something which is known as ‘limited liability’, a feature which is often seen as one of the main benefits of operating under the structure of a limited company.