I work for a very small company. My boss, who is also a very good friend is setting up a new ltd company for a new business venture, which is a very exciting project and I think it will be a success. He has asked me if I will be a company director, not as a partnership, more so I can make decisions if he is ever incapacitated for any reason.
It would come with a pay rise and some shares.
I know as a director there are some responsibilities, can anyone please tell me in simple terms what the drawbacks would be for me to do this.
What would happen if one day I decided to leave my job? Can I just resign from being a director?
At the moment I am fully committed, I love my job, my colleagues and my boss. I feel fully supported and very respected at work.
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Becoming a director of a ltd company
Thingsthatgo · 27/03/2024 20:17
coodawoodashooda · 27/03/2024 21:24
I wouldn't touch it with a bargepole.
turkeymuffin · 27/03/2024 21:31
And this is how the rich get richer and the
"normals" stay poor.
On the face of it it's a great opportunity if it's a good business and you are fairly compensated.
Being a director is a job. You can be executive (so work for the company) or non executive (more of an advisory role).
You should look at the business case and plan and see if you believe in it. And if you can add value.
You should question the nature of the shares on offer - are there different classes. Are yours dividend bearing and do you have voting rights?
coodawoodashooda · 27/03/2024 21:24
I wouldn't touch it with a bargepole.
determinedtomakethiswork · 27/03/2024 21:29
She cannot be sued if it's a private limited company - that's the whole point of them.
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