Directorship - What does it mean?????

Future 2050

The company I work is a private sector service based company. I am possibly being made a director in due course. What does this generally entail. Is it a vote and a small share only. And also does this share usually purchased at a reduced rate or given for free. What is the general percentage (Ie. 2%)

Also I do not wish to work long term for a company I dont have some sort of ownership in. Do companies generally allow employees to buy a share to keep them long term. All this area I know little about would be great any input.

Also what difference between associate director and director generally

Future 2050

Thanks for that - it does not mention about a share of the company. Do directors generally recieve a slight share of the company also.

Surely they have some option to buy in two ????????

jamesd

I was asked to become a director in a company a few years ago and gladly signed up, i then found out the main director/shareholder was very corrupt and had not been paying prsi for anyone in the company and had also been fidling the pensions so look very carefully into what you are walkign into.

The Guvnor

It is difficult to talk specifics when we are not fully aware of the facts (perhaps you are in the same position).

I think I would be correct in saying that as a Director of a LTD CO you do assume more risk. You could be liable for the misdemeanours of another.

Perhaps wise to discuss this with an accountant or similar to get some accurate advice before signing the contract.

The_Conductor

Be very careful- when you become a director of a company- you have legal responsibilities associated with that company. In the current climate I'd be extremely hesitant to consider becoming a director- unless I was thoroughly au fait with how the company was run and had the opportunity to examine several years worth of accounts.......

kenbrady

Future 2050 wrote: »

The company I work is a private sector service based company. I am possibly being made a director in due course. What does this generally entail. Is it a vote and a small share only. And also does this share usually purchased at a reduced rate or given for free. What is the general percentage (Ie. 2%)

Director means you make decisions about the company operations, can mean very little or a lot. Directors have nothing to do with owning the company.
It all depends on the company, the articles of association might have some details.

Future 2050 wrote: »

Also what difference between associate director and director generally

Again those terms could mean anything, it all depends on the company

Future 2050

Thanks all; thats a bit of input. I can not understand though why someone would become a director just for more say in the company. Fair enough it might be an increased salary but probably more work for it anyway and alot more personal risk.

If there is no incentive to make the company grow through a share holding what is the drive????? ( bar that it should be anyway.)

Anyone buy into there company????????

Any architects there I believe architecture firms seem to have alot of directors / associate directors. How does the company move on to the next generation.

Thanks

Future 2050

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