Every board needs a human director

As from 1 October this year, all companies (including dormant companies) must have at least one natural director, i.e. a human being rather than a company or other legal entity, s155 Companies Act 2006 ("Act").

This requirement took effect from 1 October 2008, but under transitional provisions companies who did not have a natural person as a director but did have the requisite number of directors on 8 November 2006 (when the Act received royal assent), were granted a period of grace until 1 October 2010. Therefore, any company still relying on these transitional provisions must appoint at least one new director who is a natural person by the deadline of 1 October this year.

The Secretary of State may issue a defaulting company with a direction to comply, and failure to comply may result in fines of up to £5,000 for both the company and directors in default, with the possibility of additional daily default fines being issued.

For further information, please contact Lorraine Munday or speak to your usual Taylor Wessing contact

Lawyers Lorraine Smith