Corporate Directors and Under-Age Directors – Sections 155 to 159

Corporate Directors

A company will be required to have at least one director who is a natural person – individual.

How will this new requirement affect corporate directors of existing companies?

From 1st October 2008 every company has to have at least one director who is a natural person, but there is a grace period until October 2010 for any company that only had corporate directors on the day the Companies Act received Royal Assent, i.e. 8th November 2006.

Underage Directors

The Act introduces a minimum age for a director of 16 years old, this came into force on 1st October 2008.

What happens to existing directors under the age of 16 on the 1st October 2008?

Existing under-age directorships will cease, with no notification to the Registrar required.

Is the company required to amend any company records?

Yes, the company is required to amend the register of directors to reflect the fact that the appointment has ceased.

Do the under age directors’ rules apply retrospectively?

Yes. When a person appointed as a director of a company before section 157 (minimum age for appointment as director) comes into force, has not attained the age of 16 by 1st October 2008, that person ceases to be a director.

What if as a consequence of the changes, the company is left without an eligible director?

Companies without an eligible director will be in default and will need to appoint at least one director to remedy the position