Resolved Question
Who employs a Director of a start up company? Is it the Director him/her self?
What information is needed as evidence of this?
Does it need to be decided through a Board resolution or can it be a simple contract?
If a contract, can the same person sign twice under two different capacities (employer and employee)?
Does it need to be decided through a Board resolution or can it be a simple contract?
If a contract, can the same person sign twice under two different capacities (employer and employee)?
Best Answer - Chosen by Voters
Your question is flawed - a director is not necessarily an employee of the company, and is not automatically entitled to be paid or to receive any other benefits. Often a director is also a shareholder and his income comes from the shares.
A company has to have at least one director (used to be 2). It is the job of the directors to run the company. When a new company is created one or more directors are appointed. In existing companies director can resign or be removed and/or be appointed.
Obviously many companies and directors want to receive a salary. In this case the director is also given a "service contract" ie he is taken on as an employee. The procedure to do this varies according to the company rules (Articles) and may need shareholder approval. But once approved there will be a normal employment contract. In theory the director could sign under each capacity, but it would be good practice to avoid this.
Please also note that it is the company that is the employer - a director always acts on behalf of the company. Also, there is no such thing as a "simple contract". Everything the directors do on behalf of the company must be authorised in some way. This might be directly through the Articles, but that is more likely to authorise the board rather than an individual director. So board approval would always be needed, either to directly approve the service contract, or to delegate the responsibility to a specific director.
A company has to have at least one director (used to be 2). It is the job of the directors to run the company. When a new company is created one or more directors are appointed. In existing companies director can resign or be removed and/or be appointed.
Obviously many companies and directors want to receive a salary. In this case the director is also given a "service contract" ie he is taken on as an employee. The procedure to do this varies according to the company rules (Articles) and may need shareholder approval. But once approved there will be a normal employment contract. In theory the director could sign under each capacity, but it would be good practice to avoid this.
Please also note that it is the company that is the employer - a director always acts on behalf of the company. Also, there is no such thing as a "simple contract". Everything the directors do on behalf of the company must be authorised in some way. This might be directly through the Articles, but that is more likely to authorise the board rather than an individual director. So board approval would always be needed, either to directly approve the service contract, or to delegate the responsibility to a specific director.
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Other Answers (3)
- well the director is sign by the company owner or the head of company if the company is based on boards member then the key personal will hire the director
if the company is not up to any of those stuff then the person who invest money or the person who's idea to start the business will hire the director.
good luck0% 0 Votes - It can't be by a Board resolution as you don't have a Board until the directors are appointed. You complete Companies House Form 10, giving these initial details; that's part of the package of documents you need to provide to Companies House.
ADD: Just found a link for you : http://www.companies-house.gov.uk/forms/…0% 0 Votes - If you set up a Limited Company you become an employee of that Company.0% 0 Votes
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