If you operate a limited company, you have two important roles: that of a shareholder and also of a director. It’s important to understand there are distinct differences in these two roles.

As a shareholder, you are simply an investor expecting a nice return each year in the form of a dividend payment.

However, as a director, you’re legally responsible for running your company and making sure information is sent to Companies House on time, including:

• the confirmation statement;
• the annual accounts;
• any change in your company’s officers or their personal details;
• a change to your company’s registered office;
• or any change in your company’s person of significant control (PSC) details.

You can ask other professionals to take on some of these tasks (for example, an accountant) but ultimately you’re still legally responsible for your company’s records, accounts and performance.

You must abide by the company’s articles of association: these are written rules about running the company, agreed by the members, directors and the company secretary at incorporation initially.

A director must act in a way which is likely to promote success for the company, to the benefit of its shareholders. Directors should base any decisions made on the consequential outcome to the shareholders, the business reputation and the interests of other stakeholders such as employees and the community.

These are just some of the main responsibilities of being a director, you can find more information at Companies House.

If you would like to discuss your business structure and find a solution that is right for you, get in touch.