Should I Make My Spouse/Partner A Director?

It is quite common for couples to own their own company and we are often asked who needs to be directors, or is it sufficient for one to be the compant secretary.

Our advice in this respect is related to the shareholding of the business. If only one of the couple is a shareholder in the business, then there no problem with having a single director.

However, where both parties are shareholders, we would advise that both become directors. This is linked to recent action brought by HM Revenue and Customs against a family business, Arctic Systems Limited. More information about the case can be found here, but the case could likely have been prevented had both parties been directors.

Give us a call on 01865 821100 to discuss your own company situation.

Remember that in the event of something happening to the sole director of a business, there may be no one authorised to sign documentation or withdraw money from the back at this can often require a director or company secretary signature.