Director at more than one LTD company

[doadeer]

I am the sole director of a Ltd company that provides business services, my accountants prepare PAYE for this business. A family member would like me to be a Director of a family business of which I do a lot of work for currently. It's in sports and leisure sector. So the two companies aren't simular at all. I wouldnt receive a PAYE monthly salary but I would receive about £1000 every few months.

I have asked my accountant just waiting for reply, anything I should know? Is this all OK?

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You can be a director of as many companies as you want at the same time. The main thing is that you understand the implications if things go wrong, as you could end up liable for the debts of the company or find yourself disqualified from acting as a director - which would obviously affect your own company. As you’re already a director, I’ll assume that you understand that it comes with legal obligations and responsibilities, and that you’ll be in the firing line if it all goes wrong - and it’s not good enough to say well I didn’t actually run the company I was just the director.

The main thing I’d want to know is why they want you to be a director - is it because someone else can’t be a director anymore, for instance, but they still expect to actually run the company.

If you do it, it’s a good idea if you are a director also providing services that you have a contract to draw clear delineations between you/your company providing services and you as a director.

Personally I would never become a director of a small company that I wasn’t directly involved in running.

Sorry I left a very vague OP. I work on the family business every day with my mum and sister, I've built it up from the start (was my mums business), I run it from a business sense.