TL;DR
A director is the person (or people) who run a company. They make decisions, manage the business, and are legally responsible for the company following the rules.
What is a Company Director?
The Simple Explanation
Think of it like this:
A company is like a ship.
A director is like the captain.
The captain decides where the ship goes, makes sure the crew follows the rules, and takes responsibility if something goes wrong.
A company director does the same thing:
- Makes decisions about how the company operates
- Signs important documents
- Makes sure the company follows the law
- Files paperwork with Companies House
- Takes legal responsibility for the company's actions
Types of Directors
Executive Director
Works at the company day-to-day
Like a CEO or Finance Director
Non-Executive Director
Advises but doesn't work daily
Provides independent oversight
Managing Director
The top director who runs everything
Makes the big decisions
Shareholder Director
Also owns shares in the company
Very common in small companies
How Do I Know If I'm a Director?
There are two easy ways to check:
Check your paperwork
When you became a director, you should have signed a form called AP01 (or filled in details when the company was set up). You might also have a letter or email confirming your appointment.
Look up your company
Search for your company on Companies House and look at "Officers" or "Directors". If your name is there, you're a director.
Search Companies HouseDirector Responsibilities
By law, directors have 7 main duties. Here's what they mean in plain English:
Act within your powers
Only do what the company rules allow you to do
Promote the success of the company
Make decisions that help the company do well
Exercise independent judgment
Think for yourself – don't just do what others tell you
Exercise reasonable care, skill and diligence
Do your job properly and carefully
Avoid conflicts of interest
Don't put yourself in situations where your interests clash with the company's
Not accept benefits from third parties
Don't take gifts or payments that could influence your decisions
Declare interest in proposed transactions
Tell the other directors if you personally benefit from a company deal
Important
Being a director is a serious responsibility. You can be personally liable (have to pay out of your own pocket) if the company breaks the law or you don't do your job properly.