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2nd Director for Limited Co

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  • 06-12-2006 9:07pm
    #1
    tcs
    Registered Users Posts: 60 ✭✭


    Hi there

    A friend has asked if I'll be the second director for a limited company she needs to set up for contracting (to meet the legal requirement of having 2 or more directors). I've heard of loads of people getting their Ma, brother, sister, Granny etc. to do this for them & it's described as a "you don't need to do anything, I just need someone to sign a few things etc.".

    I just wanna know the implications of this/obligations I'd have/what liability I'd be open to etc. I found an Information book on Company Directors at http://www.odce.ie/_fileupload/publications/ODCE_DN1Book2.pdf & it talks about things like duty to the company's creditors in case of insolvency, duty to ensure that proper books of account are kept etc. I would not have anything to do with the day to day running of the company but to absolve myself of liability for anything, does it mean I have to have a slightly active involvement?

    The info book is all pretty verbose but I guess I just want to know how things work for silent directors of single member limited companies generally... Am I safe to say "yeah sure" to my friend and know that I won't be done for things I know nothing about?? Not saying I expect my friend to be engaging in fraudulent activities or anything - I just like to cover all bases before getting myself into something!

    Thanks

    T


Comments

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    #2
    antoinolachtnai
    Registered Users Posts: 9,787 ✭✭✭antoinolachtnai


    I would say that you have read the situation quite well and you that you have construed the booklet you read fairly correctly.


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    #3
    tcs
    Registered Users Posts: 60 ✭✭tcs


    By I've
    read the situation quite well
    you're confirming that I will need to have a slightly active involvement & if that's more than I'm able to give to a company I've little interest in then I shouldn't go for it just to oblige a friend?


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    #4
    kluivert
    Registered Users Posts: 2,399 ✭✭✭kluivert


    Inform your friend that you can have single director which will be included in the next companies act to be introduced.

    Companies can have a single member though.

    You can take appointment as director if you wish and then resign in a year.

    Ensure that the proper forms for the CRO are completed and that you are included on the B1 for the companies next return.


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