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Who You Need To Form A Limited Company

07 March 2016

In order to form a company, most businesses employ directors, shareholders, a company secretary, and general employees. In this article you will see what roles must be filled in order for a limited company to become incorporated at all, and which roles can be created at a later time.

 

DIRECTOR

In order for a limited company to become incorporated, there must be at least one appointed director. This is a vital role, as it will be the director’s responsibility to oversee the business and its success, and be behind most, if not all, important business decisions. They are also responsible for the health and safety of fellow employees, and take responsibility for any actions taken by their staff. It is also their obligation to ensure all legal requirements and documents are adhered to.

Most individuals are applicable to become a company director, providing they are at least sixteen years of age, have never been disqualified from a director’s position before, are not in undischarged bankruptcy, and that at least one director is a non-corporate individual.

 

SHAREHOLDER

Again, there only needs to be one shareholder to form a limited company, and this person can also be the appointed director of the company. A shareholder may invest an amount into the company, and in return normally receives a dividend as a gift for their investment. They also have the authority to vote on any business decisions. Anyone is applicable to become a shareholder.

 

In conclusion, in order to form a limited company, there must be at least one director and one shareholder, but these roles can be filled by the same person. However, employing others to fill additional roles should be considered. For example, a company secretary will carry out duties such as setting up meetings, general administrative tasks, and handling communications, which would be beneficial as a company grows in both employees and customers.

"We have worked with Des and the team at The Company Shop for 10 Years ...

Brendan Corr, Corr & Corr Chartered Accountants

 
 

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