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  • Overview

    Section 87 of the Small Business, Enterprise and Employment Act 2015 (Small Business Act) will require all directors of a company to be natural persons and prohibits the appointment of corporate directors. An appointment made in contravention of this section is void.

    The Secretary of State will also have the power to make regulations setting out the exceptions to the general requirement that directors must be individuals (although none currently exist). If this power is exercised, however, the company will nonetheless be required to have least one individual who is a director.

    There will be a transition period for companies with corporate directors. After one year of the Small Business Act provisions relating to corporate directors coming into force, any remaining corporate directors will cease to be directors (subject to any exceptions set out in regulations made by the Secretary of State).

    These provisions will come into effect in October 2015.

     

  • Related Services

    Corporate advisory

    Our experienced corporate lawyers are well placed to advise your business on a wide range of company law issues.

Get In Touch

By submitting an enquiry through 'get in touch' your data will only be used to contact you regarding your enquiry. If you would like to receive newsletters from Thomson Snell & Passmore please use the separate form below.

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General Private Client UpdatesGeneral Commercial UpdatesConstruction UpdatesCourt of Protection UpdatesAgriculture & Rural Affairs UpdatesCommercial Property UpdatesEmployment UpdatesDispute Resolution UpdatesCorporate & Commercial UpdatesCharities & Not for Profit UpdatesFood & Drink UpdatesEducation UpdatesTransport & Logistics UpdatesFamily Business & Owner Managed Businesses Updates

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Jargon Buster