Should you Remain a Company Director?
Important that you are aware of the new Health & Safety rules that apply to directors from 1 April 2016.
The new Health & Safety rules apply from April this year.
They provide substantial penalties and/or jail terms for the directors of companies who are found not to have complied with the new rules and there has been an accident or health issue.
Given the risks it does not make sense to continue as the director of a company in the following situations:
- You are a passive director – the new rules and risks apply equally to passive or active directors;
- In a family company, especially one which trades or has employees, more than one family member is a director. E.g. if both you and your spouse are directors the one who has the least active role in the running/management of the company should consider resigning before 31 March 2016
N.B. There may be other reasons why you both want to remain as a director but just be aware of the risks.
The other issue that of course arises from the above is, above all else ensure your Health & Safety policies are reviewed and documented before the end of March and do everything you can to ensure your business has a proactive health and safety culture.
Please contact us if you wish to discuss the above or organise the retirement of any director.
Confidential: The information contained in the newsletter is issued in summary form exclusively for the information of clients and staff of WK Advisors and Accountants Limited and should not be used or relied upon as a substitute for detailed advice or as a basis of formulating business decisions.