Hire a human, or risk a fine

Britain's single largest piece of legislation, the Companies Act 2006, has been phased in over the last four years. The latest change came in on 1 October. The change means that all UK companies now need have at least one human "natural person" as a director. In other words, a boa

Britain's single largest piece of legislation, the Companies Act 2006, has been phased in over the last four years. The latest change came in on 1 October.

The change means that all UK companies now need have at least one human "natural person" as a director.
 
In other words, a board cannot be solely made up corporates as directors. Previously, it was quite legal to have a parent company as the only director of a subsidiary company.

If your business is in the situation of now needing a human as a director, you need to be aware that if you don't comply you risk a £5,000 fine plus an additional daily fine for continued non-compliance.
 
Furthermore, not having at least one natural director will make it difficult to file your annual accounts with Companies House.
This was first published in November 2010

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