Can Anyone Become a Company Director in the UK?
Can Anyone Become a Company Director in the UK?
Becoming a company director in the UK may appear relatively straightforward, particularly as companies can now be incorporated quickly online. However, acting as a director involves far more than simply holding a title.
Directors are overseeing for managing a company’s affairs and are subject to a range of legal duties and obligations under the Companies Act 2006. Understanding these responsibilities is essential before accepting an appointment as a director.
Who Can Become a Company Director?
In the UK, most individuals can become a company director provided they meet certain legal requirements. A director must generally:
- Be at least 16 years old
- Not be disqualified from acting as a director
- Not be subject to a bankruptcy restrictions order or equivalent restrictions
- Have consented to act as a director
There is no requirement for a director to be a UK citizen, live in the UK, or hold professional qualifications. As a result, many UK companies have overseas directors and international business owners.
However, regardless of where a director lives, UK companies must continue to comply with their legal obligations, including maintaining a registered office, filing documents with Companies House, and meeting any applicable UK tax requirements.
What Does a Company Director Actually Do?
A director is responsible for managing the company and making decisions in its best interests.
This may include:
- Managing day-to-day business operations
- Entering into contracts
- Overseeing finances
- Ensuring legal and regulatory compliance
- Making strategic business decisions
- Acting in the best interests of the company
The precise authority of directors is often governed by the company’s articles of association and any shareholders’ agreement that may be in place.
Legal Duties of Directors
Under sections 171–177 of the Companies Act 2006, directors owe statutory duties to the company.
These duties include obligations to:
- Act within their powers
- Promote the success of the company
- Exercise independent judgment
- Exercise reasonable care, skill and diligence
- Avoid conflicts of interest
- Not accept benefits from third parties
- Declare interests in proposed transactions or arrangements
These duties apply regardless of whether the director is actively involved in the daily running of the business.
Can Directors Be Personally Liable?
Although a company is a separate legal entity, directors may in certain circumstances face personal liability.
Examples may include:
- Breach of directors’ duties
- Wrongful or fraudulent trading
- misapplication of company assets
- Certain statutory or regulatory breaches
In serious cases, directors may also face disqualification proceedings under the Company Directors Disqualification Act 1986.
Why Legal Advice Matters
Many business owners accept director appointments without fully understanding the legal responsibilities involved.
Seeking legal advice at an early stage can help directors:
- Understand their duties
- Reduce governance risks
- Ensure proper decision-making procedures are followed
- Protect the interests of the company
- Minimise the risk of disputes or liability
This is particularly important for start-ups, family businesses, shareholder-managed companies, and businesses with overseas elements.
How We Can Help
At Chan Neill Solicitors LLP, our corporate and commercial team advises directors, shareholders, investors, and businesses on a wide range of company law and corporate governance matters.
If you require advice regarding directors’ duties, shareholder relationships, company governance, or corporate disputes, our team would be pleased to assist.
Paralegal to Partner series: Gideon Rix
Arbitration is often described as faster and cheaper than litigation—but how true is that in practice?
In this Paralegal to Partner feature, Gideon Rix draws on a decade of experience behind the scenes of international arbitrations to offer a candid, practitioner’s perspective.
If you could give one piece of advice to your younger self at the start of your legal career, knowing what you know now, what would it be?
One piece of advice I would offer is to trust your judgment, Identify senior lawyers whose careers you wish to emulate, and learn to work exactly as they do before attempting to develop your own style.
What is one legal skill junior lawyers obsess over that matters far less than they think — and one they underestimate entirely?
I have observed that, throughout my career, junior lawyers often obsess over making their legal writing appear formal and almost Dickensian. There is a general belief that legal writing must be serious and formal in tone, and an attempt to achieve this can have almost absurd results. However, what junior lawyers frequently fail to recognize that it is far more important to write in a simple and easily understood manner.
Outside of black-letter law, what makes a genuinely excellent litigator in 2026?
I think a genuinely excellent litigator has to have some understanding of the industry in which they are litigating. It isn’t enough to just understand the law; you have to understand how your client’s business works.
Litigation over contracts is rarely going to be decided purely on the contents of a contract. It will depend largely on the industry in which that contract was signed and an understanding of how that business operates, what is standard, what is commercial, what makes sense, and what does not. A black-letter lawyer who may have a perfect understanding of the law may fail to understand that the arguments he’s making may be technically correct, but they will have catastrophic consequences for the client if they are pursued.
What case (public or personal) completely changed the way you think about litigation?
Every case I take on changes how I think about litigation. A good litigator is always learning and developing. When your understanding of litigation becomes static, you become outdated.
In terms of cases that have left a lasting impression beyond all the others, as a junior lawyer I once worked on a case in which our client, a liquidator of a company, was forced to take action the did not want to take, filing a claim against a former director who had done everything to help his former employees, but due to a legal technicality, was being pursued. All parties wished to reach some form of solution to avoid an innocent man being made bankrupt. Eventually a settlement was reached that all parties were happy with.
The lasting lesson I took away from that case, was that sometimes parties have no choice but to take legal action. Second, Parties can always settle a dispute, if there is sufficient will to do so.
Litigation Case study 1: Defending a Borrower’s Rights
Bridging Loan Dispute: Defending a Borrower’s Rights
Chan Neill Solicitors LLP acted in a complex, high-value, multi-party dispute concerning bridging finance, secured lending, and contested repayment allocations involving a London-based family home. The matter arose against a backdrop of significant financial and business pressures for a restaurateur. Following bankruptcy, director disqualification, and substantial business liabilities, the family property had been placed into trust and refinanced through a series of secured lending arrangements, personal guarantees, and bridging loan facilities. Over time, additional borrowing was undertaken to stabilise the family’s financial position.
The dispute crystallised after a substantial repayment of £1 million was made to the lender, with the intention of discharging the secured borrowing against the family home. Rather than applying the funds solely to the secured loans over the property, the lender allocated the payment across a range of unsecured debts and facilities involving third parties, relying on contractual provisions granting discretion over payment allocation.
Chan Neill Solicitors acted for the Defendant in challenging the lender’s position, advancing arguments rooted in both contract and equity. Central to the defence was the contention that the lender’s approach amounted to an unlawful interference with the borrower’s equity of redemption, raising questions as to whether contractual discretion had been exercised in a way that improperly prevented the release of security over the property. Issues of privity of contract and the propriety of allocating funds toward liabilities involving third parties also formed part of the dispute.
Alongside substantive legal arguments, the matter involved extensive procedural and disclosure disputes. Led by the Head of Litigation, Gideon Rix, Chan Neill Solicitors resisted broad disclosure requests concerning unrelated third-party arrangements while pressing for greater transparency regarding the lender’s internal decision-making and rationale behind the allocation of funds. The Litigation Team also put forward robust pleadings, amendments, and negotiated substantial extensions relating to witness evidence.
Over the course of CNS’ involvement in these complex proceedings, CNS supported productive settlement discussions, helping facilitate negotiations while protecting the client’s position through procedural safeguards and consent arrangements pending resolution. This matter demonstrates CNS’s experience in navigating sophisticated property and finance disputes involving secured lending, contractual interpretation, equitable principles, and strategic litigation management in high-value proceedings.
At Chan Neill Solicitors LLP, our Litigation team advises individuals, businesses and international clients on a wide range of commercial, property and cross-border disputes.
With extensive experience in high-value and complex litigation, we help clients protect their rights and achieve practical, commercial outcomes. We advise clients in English, Mandarin and Cantonese. Contact our Litigation team for early legal advice to help resolve your dispute effectively.
Child Custody and Child Arrangements Orders: What Parents Need to Know
When parents separate, arrangements for their children are often one of the most important issues to resolve. This may include where a child will live, how much time they will spend with each parent, and how important decisions about their upbringing will be made.
In England and Wales, these issues are usually dealt with through child arrangements, and where court involvement is needed, a Child Arrangements Order may be made.
What is child custody?
Child custody generally refers to arrangements concerning a child’s care after separation. This can include living arrangements, contact with each parent, holiday arrangements, and decisions relating to the child’s upbringing.
Child custody issues can be emotional and difficult, particularly where parents have different views about what is best for the child. Wherever possible, parents are encouraged to reach an agreement through discussion, negotiation or mediation.
What is a Child Arrangements Order?
A Child Arrangements Order is a legally binding court order that sets out arrangements for a child. It can decide:
- Who the child will live with
- How much time the child will spend with each parent
- When and how contact will take place, including phone or video contact
A Child Arrangements Order may be needed where parents cannot agree arrangements themselves, where existing arrangements are not working, or where there are concerns about a child’s welfare or stability.
When deciding child arrangements, the court’s primary consideration is always the child’s welfare. There is no automatic preference for either parent. The court will consider the individual circumstances of the case and what arrangement is in the child’s best interests.
Parental responsibility
Parental responsibility is also an important part of child arrangements. It refers to the legal rights and responsibilities a person has in relation to a child, including decisions about education, medical treatment, religion, travel and other important matters.
Having parental responsibility does not automatically mean that a child will live with that parent. Living arrangements and parental responsibility are separate issues, although they often overlap in family law disputes.
How we can help
At Chan Neill Solicitors LLP, we understand that disputes involving children can be stressful and emotional. Our family law team can provide clear and practical advice to help you understand your position and make informed decisions.
We can assist with:
- Child custody and child arrangements
- Child Arrangements Orders
- Contact and visitation arrangements
- Parental responsibility disputes• Relocation and international child arrangements
- Mediation and negotiated settlements
- Court proceedings where necessary
Our aim is to help parents reach arrangements that support their child’s wellbeing while providing clarity and stability for the family.
As a trilingual team, we provide advice in English, Mandarin and Cantonese, ensuring that clients from a wide range of backgrounds can access legal support with confidence.
If you would like to discuss child custody or child arrangements, please contact our family law team.
Received an Unclear Claim or Defence? Here's What You Can Do
In litigation, it is not uncommon for one party to feel that the other side’s case is unclear, vague, or missing important details. A claim or defence may contain broad allegations without properly explaining what is being alleged, how losses are calculated, or what factual basis the other party relies upon. In these situations, the Civil Procedure Rules (“CPR”), in particular CPR Part 18 and its Practice Direction, set out a procedure allowing parties to request clarification or additional information about matters in dispute
What is a Request for Further Information?
A Request for Further Information is a formal request asking another party to clarify matters contained in their statement of case, such as the Particulars of Claim or Defence.
Statements of case are important because they define the issues in dispute and allow each party to understand the case they must meet. Where a statement of case lacks sufficient detail, the opposing party may serve a CPR Part 18 Request seeking further clarification or information before the matter progresses further, provided this is reasonably necessary and proportionate to understanding or preparing their own case.
When Might a Request Be Necessary?
A request for further information may be appropriate where:
- allegations are vague or unclear;
- important facts or dates are missing;
- losses have not been properly explained;
- contractual terms relied upon have not been identified; or
- the defence does not clearly explain why liability is denied.
For example, a claimant may allege breach of contract without specifying which contractual term was breached or how the breach occurred. Clarifying these issues early can help narrow the dispute, avoid unnecessary costs, and assist parties in evaluating the strengths and weaknesses of the case.
Is There a Formal Procedure?
Under CPR Part 18 and Practice Direction 18, a party seeking clarification should first serve a written Request on the other side, stating the information sought and a reasonable date for a response. Requests should be concise, focused, and strictly confined to matters reasonably necessary and proportionate to prepare the requesting party’s own case or to understand the case they have to meet. If the responding party refuses to clarify their position or provides an inadequate response, the requesting party may apply to the court for an order requiring a response, but the court retains a wide discretion whether to grant such an order having regard to relevance and proportionality. Parties should therefore be cautious when making requests; overly broad or unnecessary requests may be challenged and could have costs consequences.
What Are the Limits?
A Request for Further Information is not intended to be a “fishing expedition” or a way to obtain all of the other side’s evidence before disclosure.
The court may refuse requests that are:
- overly broad;
- disproportionate; or
- unnecessary for resolving the real issues in dispute.
Careful drafting and strategic consideration are therefore important.
Conclusion
Requests for Further Information can be an important procedural and strategic tool in litigation. They may help clarify the issues in dispute, identify weaknesses in the opposing party’s case, and avoid unnecessary delays or costs later in proceedings.
However, deciding whether a request is appropriate, how it should be drafted, and how to respond to requests from the opposing party often requires careful legal and tactical consideration.
As a multilingual law firm, Chan Neill Solicitors LLP regularly advises UK and international clients on commercial disputes, civil litigation, and court proceedings. Our experienced dispute resolution team provides strategic and commercially focused advice at every stage of a claim.
If you require advice on a dispute or have received court documents, please contact our team to discuss your matter.