need advice

new2t

hi , my friend is consideriing setting up a business and asked me to be alternative director of said business, i was just wondering does this leave me open to any bills and other stuff or is it simply just a name as he said? thanks for ur replys in advance

TylerIE

new2t wrote: »

hi , my friend is consideriing setting up a business and asked me to be alternative director of said business, i was just wondering does this leave me open to any bills and other stuff or is it simply just a name as he said? thanks for ur replys in advance

Yes you are open to a few things.

Off the cuff:

- As director you can be held liable if the company engages in any illegal or negligent practices.
- If you leave the company for any reason, you may be held liable for up to a year afterwards for any actions / inactions / negligence / fraud / other dodgy practice of the company.
- This includes the tax and health and safety obligations of your company.
- If the company is dissolved or fails to file its returns you may be barred from becoming a director for a number of years, so it would mean you cant start your own company.

- It may [will] affect your eligibility for Social Welfare payments [if applicable]
- If you apply for Third Level Maintenance Grants for you or your children you are expected to disclose your directorship, and this could affect your eligibility for a grant.

There are other issues but I aint a solicitor / companies expert but I do know the above.

As a director everything the company does is "in your name" and if its grossly illegal then you may be held liable. You have limited liability in terms of loans / creditors etc in the companies name, unless you sign a personal guarantee, but not criminal matters.

I'm all for encouraging business and entrepreneurship, however I wouldnt become a director out of naivety...

Delancey

All of the above plus the not unimportant fact that you to a certain extent put your own good name on the line , were there for some reason to be adverse publicity about the company that will surely rebound on you.
Why has your friend asked you and not a family member to serve as director ?

jblack

Company will also need a secretary (not the suggestive glasses and black silk stockings type); this can be one of the directors - it's IMO a giant pain in the ass with tonnes of paperwork and admin although if your budding co-director is onto a winner with the business then you have your answer.

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

jblack

Delancey wrote: »

plus the not unimportant

plus followed by a double negative... nice

Zambia

new2t wrote: »

hi , my friend is consideriing setting up a business and asked me to be alternative director of said business, i was just wondering does this leave me open to any bills and other stuff or is it simply just a name as he said? thanks for ur replys in advance

What do you get out of this?

nuac

Run New2T, run!

Previous posters have outlined the exposure.