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Author: ngaunt Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 87699  
Subject: Re: director for residents management co Date: 14/02/2012 10:13
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Shareholders appoint directors to run the company on their behalf. There is no legal requirement for a director to be a shareholder. There is no need for the directors to be related in any way with the shareholders.

UNLESS: Its written in the "Memorandum & Articles of Association" of the ltd company. Which are the "company manifesto" and are legally binding. These might specifically state that only shareholders/residents may be directors. It would be unusual, but not impossible for a residents company.

EVEN in this latter case, it would be perfectly ok for the directors to appoint someone else to do 99% of the work for them. But in this case remember the directors retain legal responsibility (and liability) for the actions of the company. "I didn't know" is no defence!

ATB
Nige
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