What Is a Company Director?
A company director is a person responsible for managing the day-to-day operations and long-term direction of a business. Directors are formally listed on the company’s record at Companies House and must act in accordance with the Companies Act 2006.
A UK company must have at least one natural person as a director. Corporate directors are permitted in some cases, but cannot act alone.
Who Can Be a Director?
- Be at least 16 years old
- Not be an undischarged bankrupt (unless with court permission)
- Not be disqualified under UK law
- Have the mental and legal capacity to fulfil the role
Non-UK residents can serve as directors of UK companies, and many do—especially in global service and e-commerce businesses.
Core Legal Duties of a UK Director
Under the Companies Act 2006, directors have seven general legal duties:
- Act within powers – comply with the company’s Articles of Association
- Promote the success of the company – for the benefit of members/shareholders
- Exercise independent judgment – avoid conflicts of interest
- Exercise reasonable care, skill and diligence – stay informed
- Avoid conflicts of interest – disclose and manage potential issues
- Not accept benefits from third parties – especially where a conflict may arise
- Declare any interest in proposed transactions – transparency is mandatory
Failure to uphold these duties can result in personal liability or disqualification.
Administrative Responsibilities
In addition to strategic oversight, directors are responsible for:
- Filing annual accounts and confirmation statements with Companies House
- Ensuring tax returns are submitted to HMRC
- Keeping statutory registers up to date
- Appointing auditors (if required)
- Maintaining correct use of the registered office and service address
- Notifying changes to shareholdings or company structure
Dragonfly Associates provides filing and compliance support to assist directors in meeting these duties, depending on the agreed plan.
Financial Responsibilities
- The company keeps proper accounting records
- Corporation Tax, VAT, and PAYE are registered and paid as required
- Directors’ Loan Accounts are managed correctly (if used)
- Dividends are only declared from distributable profits
Failure to meet financial obligations may result in penalties for the company and, in some cases, personal liability for the director.
We provide accounting and tax services tailored to small and growing businesses, available through service agreements.
Personal Liability and Risk
Although limited companies offer legal protection, directors can be held personally liable in cases of:
- Fraud or misconduct
- Trading while insolvent
- Failure to keep accurate records
- Breach of fiduciary duties
In serious cases, directors may be fined, disqualified, or face criminal prosecution. Having access to accurate advice and timely compliance support is critical.
Support for Directors
Dragonfly Associates works with company directors every day, providing:
- Formation and setup guidance
- Ongoing compliance support
- Annual filings and reminder systems
- Bookkeeping, accounting, and tax registration
- Director-specific briefings on duties and obligations
Our support is delivered under clearly defined service agreements, ensuring directors have the clarity and protection they need.
Frequently Asked Questions
Can I be the only director of my company?
Yes. Many UK companies operate with a single director who is also the sole shareholder.
Can I be a director if I live outside the UK?
Yes. There is no residency requirement to serve as a director of a UK company.
What happens if I fail to fulfil my responsibilities?
In minor cases, you may receive a warning or fine. In serious cases, Companies House or HMRC may pursue legal action or strike your company off the register.
Take Your Role Seriously—With Confidence
Being a company director is both a privilege and a legal commitment. With the right support, it’s also an opportunity to lead your business with professionalism and accountability.
Dragonfly Associates helps directors stay compliant and focused on growth—with services tailored to your needs and delivered under transparent agreements.
Get in touch today to find out how we can support you as a company director.
