02: Are you a director?

There is no precise definition of a director in company law. Broadly, a director is anyone occupying the position of a director by whatever name called. The precise name does not matter — for example, it could be Chairman, Managing, Chief Executive, Non-executive or Associate.

You may even be regarded as a shadow director if you do not formally have the word director in your title, but you act as a director and in some way control the business.

Being an employee of the company does not prevent you from also being a director. A director/employee should have the security of a written contract of service, which a director alone may not possess.

All directors, however named, have duties and responsibilities. In some instances, it may be wise to reject an appointment as a director; for example where the financial status of the company is precarious.