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Becoming a company director

  • 06-05-2010 7:29am
    #1
    daisy100
    Registered Users, Registered Users 2 Posts: 64 ✭✭


    Hi everyone,
    I need some advice, ive been invited to invest in a new start up business and become a company director- initially i was offered a job with the new company which was great news for me but now they have approached me and asked would i like to invest and become a director. The initial outlaw is small so i can afford to invest, but i no absolutely nothing about being a company director- they have told me i will still have my weekly wage - but surely there most be more pro's and con's to becoming a director.
    All advice greatly appreciated.
    Thanks.


Comments

  • #2
    ghosttown
    Registered Users, Registered Users 2 Posts: 691 ✭✭✭ghosttown


    http://www.odce.ie/en/company_companies_responsibilities.aspx

    You've got to think long and hard about this one. Your increased responsbilities put you in a position to share in the wealth of the company as it grows, but you also have legal / moral and financial considerations. Read the attached from the office of the director of corporate enforcement as a start. The decision ultimately is yours.
    Best of luck with it !


  • #3
    thecleverone
    Closed Accounts Posts: 337 ✭✭thecleverone


    The link that ghostown provided is your best source of info. Broken down, your responsibilities are as follows:

    Ordinary Duties:
    • To manage the affairs of the company with reasonable care and skill
    • Go Prepare for, go to and participate in all Directors meetings
    • To keep up to date with all affairs of the company
    • Delegate certain duties to other officers of the company when the matter is beyond your personal expertise.

    Fiduciary Duties:
    • Directors must exercise their powers in good faith and must at all times act in the best interests of the company as a whole.
    • Directors are not allowed to make an undisclosed profit from their position as Directors
    • Directors must account for any profit they derive from their position as Director
    • Directors are obliged to carry out their functions with due care, skill and diligence
    • Directors must exercise their powers for the purpose for which they were intended
    • Directors must declare any potential conflict of interest
    • CA1990 S.53 imposes certain obligations on Directors, spouses and families to disclose information regarding shares and interests held by them in the company.

    Statutory Duties:
    • To Maintain proper books of account
    • To prepare annual accounts
    • To have an annual audit performed
    • To maintain all statutory registers and other documents
    • To file certain documents with the Registrar of Companies / CRO
    • To disclose certain personal information CA1990 S.53
    • Duty to convene general meetings of the company e.g. when assets of the company fall below half the value of the called up share capital.

    As a limited liability company you will have the protection of limited liability but this can and has been lifted in many circumstances and so is not bullet proof. Director can and have been found personally liable in certain circumstances. Also if the company is to seek any type of bank funding etc, Directors are more than likely now required to sign a personal guarantee.... so be sure you won't be stuck with any personal debt should the company not succeed.

    Also, as a potential investor, i presume they are offering you a shareholding in the company?


  • #4
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    daisy100 wrote: »
    Hi everyone,
    I need some advice, ive been invited to invest in a new start up business and become a company director- initially i was offered a job with the new company which was great news for me but now they have approached me and asked would i like to invest and become a director. The initial outlaw is small so i can afford to invest, but i no absolutely nothing about being a company director- they have told me i will still have my weekly wage - but surely there most be more pro's and con's to becoming a director.
    All advice greatly appreciated.
    Thanks.

    First they offered you a job and now they want you to be a director?

    Something sounds smelly to me. It sound like these chaps are trying to satisfy some part of company law - I suspect that it's this - http://www.cro.ie/ena/business-registration-company-officers.aspx. I mean who the hell in their right mind would do something as I have described above?

    Can you give us a wee bit more detail about the current directors?


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