Becoming a director of a ltd company

[Thingsthatgo]

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.

www.gov.uk/guidance/being-a-company-director

Technically you could be liable if things go wrong, works accidents, people suing the company, debts etc. I would think very carefully about this and do some homework beforehand. There is a reason there is no sentiment in business, (if it hits the fan)

I wouldn't touch it with a bargepole.

She cannot be sued if it's a private limited company - that's the whole point of them.

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?

Make sure that there is appropriate directors and officers insurance cover in place - it's so important!

Don't do it

You’d have to do an annual
tax return for evermore, even if your salary is regular PAYE…

Not in my case. In my scenario I was the rich and the poor conned me out of my money. Bullet proof crudentials. Total con.

Wow! Lots of different opinions. Would be useful to understand why some people wouldn't touch with a barge pole! I will be working for the company regardless of whether I become a director or not. I shall be splitting my time between both of the companies.
It's a limited company, and my boss has been running his current limited company for over 20 years (with help from me for the last 4).

Oh and I do an annual return anyway because I am self employed and PAYE, so that's not a hardship!

This is not correct. There are certain instances in which a director can be pursued personally despite the business being a company.

Some directors have had a prison sentences. I don’t mean to sensationalise but if it hits the fan no one has your back. You may be great friends now but money issues for example test most relationships. Cover your own back by researching possible pitfalls if you really feel this business is a risk worth it.

I'm a director of a Ltd company and provided you keep your paper work completely up to date you should be fine.

The IoD can be a useful resource.

Directors dob have extra responsibilities... such as filing company records (usually some by the company secretary).
Also directors can be personally prosecuted for breaches of the law .. e.g. breaching H&Safety if someone was to be killed/hurt.

As others have said, good directors insurance (but it wouldn't stop you going to jail) and check you documents on your shareholding so you are not responsible for something you don't have control over.

It's very normal to be a director.. and not usually any issue. I've been a director of several companies... although they were sporting or charitable organisations.