Once you’ve appointed a director using the Companies House AP01 form, there can still be a number of jobs to do relating to a director’s appointment. Our quick checklists cover a number of things that can otherwise easily be forgotten.
What to tell the director?
You might need to inform the new director of:
- Any share qualifications he must acquire under the company’s articles of association and the time allowed for him to do this (taking care to avoid price-sensitive periods)
- The need for him to give appropriate notice of interests in any of the company’s contracts
- Any further general information about the company and its business
- Issues affecting the company – copies of recent minutes may be useful in relaying subjects of current importance
- The company’s financial position – including copies of the latest accounts and management accounts (and any supplementary information)
- The planned schedule of future board meetings and the date of the next AGM
While a formal induction programme may be out of reach for most small companies, it’s still worth giving thought to what the director needs to know so they can best perform their role.
The ICSA has produced some excellent guidance notes in this area. While many parts of this will be most suited to larger companies, there are useful ideas that all businesses can use.
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The details of a director’s service contract may still need to be finalised. If, under the agreed contract, any form of remuneration is to be made to the director, their account details will be required in order to set up the payments.
What else do I need to update?
There are several other changes you’ll need to make:
- The company’s letterhead and other business stationery, if it includes the names of all directors.
- The company’s website, where all directors are listed. Some companies also choose to include short biographies of the directors.
- The statutory books: in particular, the register of directors and register of directors’ residential addresses will need to be amended.
- The company’s reporting structure, wherever this is recorded. Where the directors’ division of responsibilities is recorded, this should also be reviewed and updated as necessary.
If the new director will be a signatory on bank accounts, the bank mandates will need to be updated. The bank will want a specimen signature for the new director.
The director should also be added to any existing directors’ and officers’ indemnity insurance policy. If you do not currently have a policy in place, the new appointment might be the point to consider taking one out.
Who else should be told about the appointment?
You may want to consider informing:
- The company’s bank and directors’ indemnity insurance provider – as noted above
- The company’s employees
- Customers of the company, particularly major clients or those who will have most contact with the new director
- Suppliers, again particularly if they will have significant contact with the new appointee
- HMRC, where applicable
Use new appointments to help your marketing efforts!
The appointment of a new director can provide a good marketing opportunity. You might therefore want to think about publicising the appointment, especially if it can be linked to marketing messages that the company is keen to convey.
You could use some combination of:
- A news item on the company’s website
- A press announcement or fresh advertising campaign
- Publicity via an industry body, including industry specific publications
Check out our article showing how easy it can be to appoint a new director and do contact us if you have any other director appointment tips you’d like to share with others!
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