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Business founders/entrepreneurs

Becoming a director of a private school

5 replies

Thingsthatgo · 20/07/2020 09:39

But of a weird question, it’s to help out a family member, but I can’t give too many details.
Is it possible to become a director of the company (charity I’m guessing) that owns a private school without financial investment into the company? And are they any reasons other than financial gain why someone would want to do that?

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akkakk · 20/07/2020 10:27

Depends on how the school is set up - a charity can still have an associated limited company, or might not - charities have trustees, companies have directors...

unless banned from acting as such then you can become a director of any business and need have no financial investment in the business - clearly for a charity, becoming a trustee also has no financial link...

being a director gives you legal rights in decision making - but also legal responsibilities and obligations - and ultimately if it all goes wrong, legal liabilities as well. Lots of reasons why you might wish to take that role - belief in helping to make the school succeed / a desire to push the school in a specific direction / etc. - none of that is necessarily financially motivated...

but if you / family member are uncertain, and have little knowledge you could be entering a minefield - so get proper advice

Thingsthatgo · 20/07/2020 11:49

Thank you for your help, it is definitely a director role, so I’m guessing that it is a ltd company.
It is not that my family member wishes to become a director, it is her DH, who has become a director without telling her. She panicked and was unsure if it could impact her financially. He has a history for doing things in secret.

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akkakk · 20/07/2020 17:41

Yes, it can do - but only through malpractice...
You can search for limited companies and directors here: beta.companieshouse.gov.uk/ which will confirm whether he has become a director of a limited company - if so, then the limited means limited liability - basically no issues for the directors unless they are found to specifically set out to break the law (rare) - if he is not there / the school is not there, then you would need to find out the structure under which the school operates before understanding the significance...

LonginesPrime · 21/07/2020 16:07

Assuming he's involved in the management of the school anyway, it seems reasonable that he'd be on the board of directors, so it's not necessarily alarming in itself.

The articles of association of the company (also available from companies house) might help her to understand the reason he had to become a director (e.g. it might specify all people in x job role must be directors, etc), although in an ideal world, he'd be able to explain it to her himself!

Thingsthatgo · 21/07/2020 21:35

Thanks. He actually works for a nearby state school, although I guess he might be planning to change his job.

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