Abigail Owen, Corporate Partner at Rawlison Butler LLP highlights the imminent deadline on the use of sole corporate directors. After 30 September 2010, if a company does not have at least one 'natural person' ie an individual, acting as a director, they will be in default and subject to fines from Companies House.
Additionally, those companies who have a natural person acting as a company secretary but with only a corporate director, will also be in default pursuant to the Companies Act 2006.
A key reason for this change is so that there will be at least one individual who can be held responsible and accountable for the actions of a company. Companies that have not got a natural person acting as a director should act quickly so as not to fall foul of the Companies Act 2006.
For further information on the Companies Act or any other corporate law issue, please contact Abigail Owen by emailing Abigail or by calling her on 08450 990045, or speak to your usual contact in the Corporate Team.
This document is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from taking any action as a result of the contents of this document.