What’s in a name - Managing Director / Chairman?

The basic rule in relation to a board of directors of a company is that they must act collectively.  In other words, decisions must be made on the basis of majority rule.  In most companies the strict application of this rule is not practical as this would stifle the day to day management of the company.  For this reason powers are often delegated to particular board members (or senior managers).  Often wide-ranging powers are delegated to the Chairman or Managing Director.  However, you should not assume that a person using either of these titles actually possesses such powers, it is by no means automatic.

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Hiding made easier for dodgy directors

One aspect of the Companies Act 2006 which has not inspired much comment is the new rules about disclosure of directors residential addresses.

These are contained in sections 240 -246 of the Companies Act 2006.  These provisions came into force on 1 October 2009, together with most of the remaining provisions of the Companies Act 2006 that had not yet been brought into effect.  For an article on all of the key changes coming in to force in October 2009 please click on this link.

The effect of ss 240 - 246 of the Companies Act 2006 will be to make life more difficult for those in the business of pursuing dodgy directors. 

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