Starting a new business? Get 40% off our accountancy services for 3 months! 😎

x

A director is responsible for the success of a company, whilst ensuring it’s compliant with any regulations. It’s a lot of work, so sometimes two or more directors share the responsibility of setting up the company and running it.

Typically though, one director takes overall responsibility for a company, becoming the managing director (or MD). Normally there is only one MD at a time.

Are there different types of company director?

There are two types of company director; executive, and non-executive. They’re largely the same, except non-executive directors usually have little to no involvement in the general running of the business.

What does an executive director do?

Executive directors are responsible for looking after the company on a day-to-day basis. This can include anything from buying and selling assets, recruitment, HR, finance, or negotiating contracts.

If there’s more than one director then they’re often responsible for a specific function in the company, such as a director of finance. Directors of a company are also responsible for filing the accounts with Companies House, and it’s the directors who may be fined if anything is late! Our video guide below explains the role of a company director in a little bit more detail.
 

What’s the point of having a non-executive director?

A non-executive director is usually only part-time, and they typically concentrate on specific projects. Their role is to provide an objective view of the business, and improve its effectiveness.

They won’t deal with the day-to-day stuff, but they will be involved in the planning and policy-making which helps to steer the company.

So what does a managing director do?

Managing directors are sometimes also known as a Chief Executive Officer, or CEO. Essentially, they are the director who leads the activities of the other directors in the business. A company usually only has one managing director at a time.
 

Limited company accountancy services

From only £54.50 per month

Learn more

Does my company need a director?

It’s a legal requirement for a private company to have at least one director whereas a public limited company must have at least two directors, and these must be separate to the company secretary. The company secretary of a public limited company must be suitably qualified before accepting the role.

 
Need help with your accounts? Get started with an instant online quote, call us for a chat on 020 3355 4047, or learn more about our company formations service.

About The Author

Lee Murphy

MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.

More posts by this author
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

Maternity Pay for Self-Employed People

Being self-employed can offer the kind of freedom and flexibility many of us dream about. But if you’re looking to start or…

Read More

What are Payments on Account?

Payments on account are a type of advance payment that you might need to make towards your Self Assessment tax bill. In…

Read More

Tax and VAT for Online Dropshippers

Selling online through your own website or on an ecommerce platform can be a great way to launch a business, or just…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You will receive our bookkeeping software Pandle for free, as part of your package.

You can use this to complete your own bookkeeping, or we can provide a quote to complete your bookkeeping for you.

Please select and option below:

I will do my own bookkeeping
I want you to do my bookkeeping

Call us on 020 3355 4047 if you’re not sure.