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.
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
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.
Subscribe to our newsletter to get accounting tips like this right to your inbox
About The Author
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.