Deadline looms to get real people on the board!

Sept. 16, 2010 - PRLog -- Rebecca Stopford, Commercial Partner with Rotherham’s Oxley and Coward Solicitors LLP, is warning local businesses that the 30 September deadline is fast approaching for every company to have at least one director who is an individual and not a corporation.

In the past it was commonplace for subsidiary companies of a group of companies to have just one director – and for that director to be a corporation rather than a real person.

Under the provisions of the Companies Act 2006, this is no longer allowed. From 1 October, every company must have at least one director who is a “natural person” as the act puts it: that is to say, an individual (living!) human being as opposed to a corporate entity.

Transitional provisions gave companies with a sole corporate director a period of grace to appoint a real person as a director, but this grace period expires at the end of the month. After the 30 September, any company that remains without at least one individual ‘natural person’ director will be liable to a fine of £5,000 plus a daily default fine until the situation is resolved.

“Clearly any company still in this situation must now act very quickly and take legal advice as to the formalities required to appoint an additional or replacement director,” warned Rebecca. “Oxley and Coward have a great deal of experience in helping companies who find themselves in need of urgent advice, but all concerned really need to act now to avoid the threat of punitive fines.”

For a free initial consultation, contact Rebecca Stopford on 01709 510999 or e-mail company@oxcow.co.uk    

ENDS

Photograph and caption

Rebecca Stopford, Commercial Partner with Oxley and Coward Solicitors LLP in Rotherham.

Media Contact: BeyondPR. Tel.: 0114 275 6996. Mob: 07930 697773. www.beyondpr.co.uk

Ref: OXCOW091 – Companies Act Update

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