Every limited company has a minimum of one director and one shareholder. (They can be the same person!).

The team at Spicer & Co Chartered Accountants is often asked about the roles … what are the responsibilities and actions? Who should be involved?

If you are a company director or shareholder, it’s important to understand your role. We hope that the information below clarifies the facts involved.

Who owns the limited company?

A minimum of one shareholder owns a company and only one share needs to be issued. It’s important to note that directors can be shareholders too. If they don’t invest in at least one share, they don’t own part of the company. A key responsibility of the shareholders is the appointment and removal of company directors.

Who manages the company?

Directors have responsibility for the day-to-day management of the company. This includes:

• Submitting information required by Companies House accurately and on time.
• Preparing and submitting company accounts.
• Participating in board meetings.

The legal tasks involved can sometimes seem overwhelming and time-consuming. The Spicer & Co team is here to help by compiling and submitting accurate and compliant tax returns, reports and accounts when required.

How many people are involved?

Each limited company must have at least one director and a minimum of one shareholder. As they can be the same person, just one individual can own and manage a limited company.

How do you become a shareholder or director?

Directors are appointed by shareholders. You may become a shareholder by buying at least one share in the company.

What are your rights?

Shareholders can claim dividends, transfer ownership of their shares and inspect company documents. Directors are entitled to make decisions on behalf of the company and can participate in board meetings.

Both directors and shareholders can receive remuneration from a limited company. Shareholders receive dividend payments according to the number of shares they own (assuming company profits enable dividend payments to be made).

Directors each receive their salary as agreed by the company. If they are shareholders too, their remuneration is usually a combination of salary and dividend payments. This is usually the most tax-efficient way of receiving money from a limited company.

What information is publicly available?

As a director or a shareholder, some of your personal information is publicly available from Companies House. Shareholders’ names, share types and share values can be accessed via the public register. Directors’ names, dates of birth and addresses are visible.

Are you a director or shareholder of a limited company?

Would you like to ensure it’s running as efficiently as possible regarding tax, profitability and planning?

Talk to the friendly experts at Spicer & Co. We’ll chat through the options without obligation or jargon. Let’s discover the best option for your business.