Director appointment - summary
To appoint a new director, larger companies tend to make the decision to do so at either an Annual General Meeting or an Extraordinary General meeting. If the board passes a majority vote to engage that person for the role, the motion is carried and that person can resume their new duties straight away.
For smaller companies, the process is much more informal and it's usually laid out in their Articles of Association. The decision to take on a new director will normally arise out of informal and ad hoc discussions carried out between the shareholders and directors.
If you decide to appoint a new director, you must inform Companies House within 14 days. Your Company Formations offers a service which handles this entire process, including the paperwork, for £19.99
For help and advice on appointing a director, please call us on +44 (0) 207 689 7888 or email us at firstname.lastname@example.org.
Director resignation or removal - our service
Our director resignation service includes the following:
- Resignation of director letter - a letter from your existing director indicating that they wish to stand down. You do not have to provide a director resignation acceptance letter but, if you do, please keep a copy of it for your internal records.
- Director resignation minutes - minutes for a board meeting where the resignation of director letter is accepted and passed, in accordance with the Companies Act 2006
- Resignation of director resolution
- Completion and submission of TM01 form to Companies House
- Email notification that the submission has been accepted by Companies House
- Delivery of digital documentation by email within 2-3 days
Frequently asked questions
What information will you need about a director I wish to appoint?
For the appointment of a director in a private limited company, the following information is going to be needed when we complete and submit the correct form (AP01) to Companies House.
In addition to the date on which the appointment was made, we'll need you to confirm with us their full name (including middle name), any names that they've used in the last 20 years, their nationality, their date of birth, and their occupation.
We'll also need two addresses. The first is their "service address" - the location to which Companies House will send letters for that director's attention. The service address is displayed on public records about your company. The second is their usual residential address.
How many directors should my company have?
Your company must have at least one human director. Although you can appoint other limited companies as a director of your limited company, not all of your directors can be bodies corporate.
Can I remove a director if my company only has one?
No. You'll need to appoint a new director first meaning that there will temporarily be two directors listed on Companies House for your company. Once the new director's role is registered, you may then remove one of the directors.
Am I barred from appointing certain people as directors?
There are restrictions on who can become a director for a UK company. Any person you wish to appoint must be aged 16 years or over and not be an undischarged bankrupt.
You can not appoint a person who has been disqualified by the courts from being a director until the date on which that bar is lifted. Any person who acts as the auditor for your business may also not take on the role of director.
Finally, some Articles of Association specifically name people who may not become a director of a company. If you wish to appoint someone in that situation, you will have to have a board meeting at which the company's directors agree to amend the Articles of Association to remove that restriction.
Is there a maximum number of directors my business can have?
There is no maximum number of directors that your company can have prescribed by law. However, your Articles of Association may contain a restriction which would need to be amended by a majority board meeting vote if you wish to exceed the maximum stated in that document.
Do I have to offer or sell shares in the company to a new director?
No. There is no legal requirement for a director to own shares in a business.