Pictured above: Catriona Wheeler
East Midlands businesses only have until September 30 to appoint
at least one director who is an individual not a corporation, says
local law firm Andrew & Co LLP.
In the past it was commonplace for subsidiary companies of a
group of companies to have just one director and for that director
to be a corporation. But, according to commercial law specialist
Catriona Wheeler of Andrew & Co LLP, this is no longer allowed
under the Companies Act 2006.
"Every company must have at least one director who is a 'natural
person', i.e. an individual human being, not a corporate entity,"
she says.
Transitional provisions gave companies with a sole corporate
director a period of grace to appoint an individual as a director
but that period of grace expires on 30 September 2010. "After that
date, any company without at least one individual 'natural person'
director, may be liable to a fine of £5,000 plus a daily
default fine.
"Clearly any company in this situation must act quickly and take
advice as to the formalities required to appoint an additional or
replacement director," says Catriona.
Her advice to local companies with a sole director is to act
now. Any business wishing to discuss concerns can contact Catriona
on 01636 673743.