Guidance Notes: Types of Directors & Appointment of Directors
How to appoint a director is of critical importance for a company, particularly considering the mandatory identity verification (IDV) requirements set out in the Economic Crime & Corporate Transparency Act 2023 (ECCTA) going live later this year. This is a new requirement that companies and individual directors must adhere to when appointing a director.
The ECCTA gives Companies House new and enhanced powers to help disrupt economic crime and the IDV regime is a key component of this.
This guidance note has been written for private companies and is in accordance with the provisions of the Companies Act 2006, it includes a discussion of:
- The legal meaning of "director";
- The types of directors in a private company;
- The number of directors & their eligibility;
- Sole directors;
- The appointment of first and subsequent directors, including consent to act and IDV;
- The publication of a director's appointment;
- Filing requirements; and
- The changes being introduced by the ECCTA (including changes to corporate directors).
This guidance note will be useful for a company secretary or company director new to the role or a refresher for a more experienced company administrator.
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