Britain's single largest piece of legislation, the
Companies Act 2006, has been phased in over the last four years. The latest change came in on 1 October.
By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers.
The change means that all UK companies now need have at least one human "natural person" as a director.
In other words, a board cannot be solely made up corporates as directors. Previously, it was quite legal to have a parent company as the only director of a subsidiary company.
If your business is in the situation of now needing a human as a director, you need to be aware that if you don't comply you risk a £5,000 fine plus an additional daily fine for continued non-compliance.
Furthermore, not having at least one natural director will make it difficult to file your annual accounts with Companies House.