{"id":1403,"date":"2022-01-10T00:03:30","date_gmt":"2022-01-10T00:03:30","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=1403"},"modified":"2026-06-17T06:23:26","modified_gmt":"2026-06-17T05:23:26","slug":"appoint-remove-director","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/corporations\/appoint-remove-director\/","title":{"rendered":"How Do I Appoint or Remove a Company Director in the UK?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Appointing or removing a company director involves following formal legal and governance procedures to ensure the company\u2019s leadership is properly authorised and compliant with company law. Appointments must meet eligibility requirements and follow the company\u2019s articles, while removals typically require shareholder approval and proper notice to be valid.&nbsp; This article explains how to appoint and remove a company director and the key legal steps your business must follow.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Appointing a Director<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Legal Requirements for Directors<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Before appointing a director, ensure the candidate meets the statutory requirements:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Age:<\/strong> Directors must be at least 16 years old. There is no maximum age limit.<\/li>\n\n\n\n<li><strong>Natural person requirement:<\/strong> Every company must have at least one director who is a natural person (not a corporate entity). Whilst companies can have corporate directors, at least one natural person director is mandatory.<\/li>\n\n\n\n<li><strong>Disqualifications: <\/strong>You cannot appoint someone who is:\n<ul class=\"wp-block-list\">\n<li>subject to a disqualification order under the <em>Company Directors Disqualification Act 1986<\/em>;<\/li>\n\n\n\n<li>an undischarged bankrupt (without court permission);<\/li>\n\n\n\n<li>a former director of a company that entered insolvent liquidation, if you are appointing them to a company with a similar name within five years (the &#8220;phoenix company&#8221; provisions under the <em>Insolvency Act 1986<\/em>); or<\/li>\n\n\n\n<li>the company&#8217;s auditor.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Criminal convictions:<\/strong> Individuals with certain fraud or dishonesty convictions may be disqualified from acting as directors. Check whether any convictions trigger disqualification.<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--warning\">\n    <p>Directors must also undertake <a href=\"https:\/\/legalvision.co.uk\/corporations\/verify-identity-companies-house\/\">identity verification on Companies House<\/a>.<\/p>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Appointment procedures under the Companies Act 2006<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The <em>Companies Act 2006<\/em> provides the statutory framework but largely defers to a company&#8217;s articles regarding appointment procedures. However, it establishes certain mandatory requirements:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Consent: <\/strong>The appointee must consent to act as director. This is typically evidenced by signing a consent to act form.<\/li>\n\n\n\n<li><strong>Minimum number<\/strong>: Section 154 requires every private company to have at least one director.<\/li>\n\n\n\n<li><strong>Register of directors: <\/strong>Section 162 requires companies to maintain a register of directors containing prescribed particulars.<\/li>\n\n\n\n<li><strong>Notification<\/strong>: Section 167 requires companies to notify Companies House of director appointments within 14 days using Form AP01.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Appointment Under Model Articles<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If your company uses the Model Articles (as prescribed under the <em>Companies Act 2006<\/em>), the appointment process is straightforward.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Appointment by directors:<\/strong> Under Model Article 17, directors may appoint a person as a director either to fill a vacancy or as an additional director. The appointment takes effect from the date specified in the resolution or, if no date is specified, from the date of the resolution itself.<\/li>\n\n\n\n<li><strong>Appointment by shareholders:<\/strong> Under Model Article 17, shareholders may also appoint directors by ordinary resolution (requiring more than 50% of votes cast).<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Appointment Under Bespoke Articles of Association<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Companies with bespoke articles may have tailored appointment procedures. Common variations include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Enhanced requirements: <\/strong>Some articles require a higher voting threshold (e.g., 75% of directors) to appoint new directors.<\/li>\n\n\n\n<li><strong>Founder or investor rights:<\/strong> Articles may grant specific shareholders or classes of shareholders the right to appoint or nominate directors to the board.<\/li>\n\n\n\n<li><strong>Approval requirements: <\/strong>Certain appointments may require approval from specific shareholders or classes of shareholders.<\/li>\n\n\n\n<li><strong>Restrictions on numbers: <\/strong>Articles may cap the maximum number of directors or require a minimum number beyond the statutory requirement.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Always review your specific articles carefully to identify any special procedures or restrictions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Appointment Under Shareholders&#8217; Agreements<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Shareholders&#8217; agreements often contain provisions affecting director appointments that sit alongside the articles:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Nomination rights:<\/strong> Investors frequently negotiate the right to nominate one or more directors to the board, often linked to their shareholding percentage.<\/li>\n\n\n\n<li><strong>Board composition: A<\/strong>greements may specify the board&#8217;s composition, including the number of investor directors, founder directors, and independent directors.<\/li>\n\n\n\n<li><strong>Approval requirements: <\/strong>Some agreements require unanimous or supermajority shareholder consent for certain director appointments.<\/li>\n\n\n\n<li><strong>Removal and replacement: <\/strong>Agreements typically grant shareholders with nomination rights the corresponding right to remove and replace their nominated directors.<\/li>\n\n\n\n<li><strong>Deadlock provisions: <\/strong>Agreements may include mechanisms for resolving disputes over director appointments.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Shareholders&#8217; agreements are contractual and binding between the parties. Breaching these provisions may give rise to claims for damages or injunctive relief.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Formalities Following Appointment<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once a director is appointed, complete the following steps:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Update company registers: <\/strong>Record the appointment in the register of directors and register of directors&#8217; residential addresses<\/li>\n\n\n\n<li><strong>File with Companies House:<\/strong> Submit Form AP01 within 14 days of the appointment.&nbsp;<\/li>\n\n\n\n<li><strong>Identity verification:<\/strong> New directors must complete the Companies House identity verification process and provide their 11-character personal code when filing their appointment. This requirement, introduced to combat fraud, applies to all new director appointments.<\/li>\n\n\n\n<li><strong>Service contract:<\/strong> If the director is also an employee, prepare and execute a service contract or letter of appointment setting out their terms of employment. Alternatively, the director might be a non-executive director, and should enter into a non-executive director agreement as a contractor to the company.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Removing Directors<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Resignation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A director may resign at any time by giving notice to the company. No specific notice period is required unless specified in the articles or the director&#8217;s service contract.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Resignation should be in writing and delivered to the company. It takes effect from the date specified in the notice or, if no date is specified, when the notice is received.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Removal Under Model Articles<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Model Articles provide for automatic termination of a director&#8217;s appointment in certain circumstances.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Model Article 18 specifies that a director ceases to hold office if they:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>cease to be a director by virtue of any provision of the <em>Companies Act 2006<\/em> or are prohibited from being a director by law;<\/li>\n\n\n\n<li>become bankrupt or make any arrangement or composition with their creditors generally;<\/li>\n\n\n\n<li>are, or may be, suffering from mental ill health and either a registered medical practitioner gives a written opinion to that effect or a court makes an order on that basis;<\/li>\n\n\n\n<li>resign by notice to the company; or<\/li>\n\n\n\n<li>have been absent without permission from board meetings for six consecutive months and the directors resolve to remove them.<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>These terminations are automatic and do not require a board or shareholder resolution.<\/p>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Removal Under the <em>Companies Act 2006<\/em><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Section 168 of the <em>Companies Act 2006<\/em> gives shareholders an overriding statutory right to remove any director by ordinary resolution. This is regardless of anything in the articles or any agreement between the company and the director.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To remove a director under section 168, the company must:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>receive special notice of the resolution at least 28 days before the meeting at which it is to be moved; and<\/li>\n\n\n\n<li>send a copy of the notice to the director concerned immediately upon receiving the notice.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Moreover, the director is entitled to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>make written representations (of reasonable length) and require the company to circulate them to shareholders; or<\/li>\n\n\n\n<li>be heard at the meeting.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">To remove a director, shareholders must pass an ordinary resolution (simple majority of votes cast) at a general meeting (written resolutions are not permitted). The meeting requires 28 days&#8217; notice due to the special notice requirement, which supersedes the standard 14-day minimum.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A director can block their own removal under section 168 if their shares carry enhanced voting rights on such resolutions. Check the company&#8217;s articles before proceeding.<\/p>\n\n\n\n<div  class=\"box box--icon box--warning\">\n    <p>Additionally, removing a director under section 168 does not cancel any contractual rights they hold. If the director has a service contract with a fixed term, they can still sue the company for breach of contract.<\/p>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Removal Under Bespoke Articles<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Bespoke articles may provide additional removal mechanisms:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Board removal powers:<\/strong> Some articles grant the board power to remove a director by board resolution, often requiring a supermajority or unanimous vote (excluding the director in question).<\/li>\n\n\n\n<li><strong>Shareholder class rights:<\/strong> Articles may give specific shareholders or classes the right to remove directors they appointed.<\/li>\n\n\n\n<li><strong>Enhanced thresholds:<\/strong> Articles may require a higher voting threshold than an ordinary resolution for removal, though this cannot override the section 168 right.<\/li>\n\n\n\n<li><strong>Automatic termination events:<\/strong> Articles may specify additional circumstances triggering automatic termination, such as:<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>breach of fiduciary duties;<\/li>\n\n\n\n<li>conviction of certain criminal offences;<\/li>\n\n\n\n<li>failure to attend a specified number of board meetings; or<\/li>\n\n\n\n<li>ceasing to hold a required shareholding.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Removal Under Shareholders&#8217; Agreements<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Shareholders&#8217; agreements frequently address director removal:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Removal of nominated directors:<\/strong> Shareholders with nomination rights typically have the corresponding right to remove and replace their nominated directors at will.<\/li>\n\n\n\n<li><strong>Removal for cause:<\/strong> Agreements may specify grounds for removing directors, such as gross misconduct, breach of duties, or criminal conviction.<\/li>\n\n\n\n<li><strong>Consent requirements:<\/strong> Some agreements require consent from specific shareholders or classes before removing certain directors.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Removal Under Other UK Statutes<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For removal under other UK statutes, you can consider the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Company Directors Disqualification Act 1986: <\/strong>The court may disqualify a person from acting as a director for up to 15 years if they are found guilty of certain offences or their conduct as a director makes them unfit. Disqualification automatically terminates any existing directorships.<\/li>\n\n\n\n<li><strong>Insolvency Act 1986: <\/strong>When a company enters administration or liquidation, the administrator or liquidator effectively takes control, and the directors&#8217; powers are suspended or cease. Directors are not formally removed but can no longer exercise their powers.<\/li>\n\n\n\n<li><strong>Enterprise Act 2002: <\/strong>The Secretary of State may apply for a disqualification order against directors of companies that have become insolvent, based on unfit conduct.<\/li>\n\n\n\n<li><strong>Criminal Justice Act 1993 and Fraud Act 2006:<\/strong> Directors convicted of insider dealing or fraud may be disqualified from acting as directors.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Formalities Following Removal<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Following a director\u2019s removal:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Update company registers:<\/strong> Record the termination in the register of directors, noting the date the directorship ceased.<\/li>\n\n\n\n<li><strong>File with Companies House:<\/strong> Submit Form TM01 (Termination of Appointment of Director) within 14 days of the termination.<\/li>\n\n\n\n<li><strong>Return company property:<\/strong> Ensure the former director returns all company property, documents, and confidential information.<\/li>\n\n\n\n<li><strong>Notify third parties:<\/strong> Inform banks, suppliers, and other relevant third parties of the change, particularly if the director was an authorised signatory.<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--warning\">\n    <p>Note that criminal penalties can apply. This occurs when you fail to notify Companies House of director changes within 14 days is a criminal offence. The company and every officer in default can be fined.<\/p>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">An improperly appointed director&#8217;s decisions may be invalid. However, section 161 of the <em>Companies Act 2006<\/em> protects third parties who dealt with the company in good faith.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Minority shareholders can apply to the court under section 994 of the <em>Companies Act 2006<\/em> if the company handles director appointments or removals in a way that unfairly prejudices them.<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2024\/12\/11035207\/Screenshot-2024-12-11-at-2.51.56%E2%80%AFpm.png\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Corporate Governance Guide for SMEs in the UK<\/div>\n            <div class=\"body-text\">\n                <p>This guide will help you to understand your corporate governance responsibilities as a director, including the decision-making processes<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.uk\/corporate-governance-guide-smes-UK.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p dir=\"auto\"><strong>Key Statistics<\/strong><\/p>\n<ol dir=\"auto\">\n<li><strong>5.43 million<\/strong>: Active companies on the UK register as of 31 March 2025, underscoring the scale of director appointment and removal obligations for businesses.<\/li>\n<li><strong>801,871<\/strong>: Company incorporations in 2024-2025, each requiring at least one director appointment and Companies House notification within strict timelines.<\/li>\n<li><strong>55%<\/strong>: Of new non-executive directors appointed to UK boards in 2025 were women, reflecting growing diversity in director appointments.<\/li>\n<\/ol>\n<p dir=\"auto\"><strong>Sources<\/strong><\/p>\n<ul>\n<li dir=\"auto\">Companies House Annual Report and Accounts 2024 to 2025<\/li>\n<li dir=\"auto\">Companies register activities statistical release April 2024 to March 2025.<\/li>\n<li dir=\"auto\">Spencer Stuart 2025 UK Board Index.<\/li>\n<\/ul>\n<\/div>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n        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Shareholders have a statutory right to remove directors by ordinary resolution under section 168, which cannot be excluded. Always follow the correct procedures and meet filing deadlines to avoid penalties and potential legal challenges.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">LegalVision provides ongoing legal support for businesses through our fixed-fee legal membership. Our experienced <a href=\"https:\/\/legalvision.co.uk\/corporate-lawyers-lp\/\"><strong>corporate lawyers<\/strong><\/a> help businesses manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision\u2019s legal membership, call <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or<a href=\"https:\/\/legalvision.co.uk\/membership\/\"> visit our membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1641772630829\"><h3 class=\"schema-faq-question\">How do I appoint a director to my company?\u00a0<\/h3> <p class=\"schema-faq-answer\">The process of appointing new directors to your company depends on your company\u2019s articles of association. In general, both directors and shareholders have the power of appointment.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1641772641231\"><h3 class=\"schema-faq-question\"><strong>Can weighted voting rights prevent a director&#8217;s removal?<\/strong><\/h3> <p class=\"schema-faq-answer\">Yes. If a director holds shares with enhanced voting rights on resolutions to remove them, they may be able to block their own removal under section 168. However, this does not prevent removal under other provisions in the articles or shareholders&#8217; agreements.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776404350086\"><h3 class=\"schema-faq-question\">What happens if we do not follow the correct procedure for removing a director?<\/h3> <p class=\"schema-faq-answer\">The removal may be invalid, and the director could bring claims for breach of contract, wrongful dismissal, or unfair prejudice. The company may be liable for damages. Additionally, failing to file the termination with Companies House within 14 days is a criminal offence.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776404355008\"><h3 class=\"schema-faq-question\">Do shareholders&#8217; agreements override the articles of association?<\/h3> <p class=\"schema-faq-answer\">Shareholders&#8217; agreements are contracts between shareholders and do not directly override the articles, which are the company&#8217;s constitutional document. However, shareholders can be contractually bound to vote in accordance with the shareholders&#8217; agreement, and breach may give rise to claims for damages or injunctive relief. In practice, well-drafted shareholders&#8217; agreements and articles should be aligned to avoid conflicts.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Appointing or removing a company director involves following formal legal and governance procedures to ensure the company\u2019s leadership is properly authorised and compliant with company law. Appointments must meet eligibility requirements and follow the company\u2019s articles, while removals typically require shareholder approval and proper notice to be valid.&nbsp; This article explains how to appoint and<a href=\"https:\/\/legalvision.co.uk\/corporations\/appoint-remove-director\/\">Continue reading <span class=\"sr-only\">&#8220;How Do I Appoint or Remove a Company Director in the UK?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13581,"featured_media":548,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"2296,1356,1166,2159,2073,1468","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[28],"tags":[89,99,112,137,280,281],"class_list":["post-1403","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporations","tag-corporation","tag-company-constitution","tag-company-director","tag-companies-house","tag-appoint-director","tag-remove-director"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Do I Appoint or Remove a Company Director? | LegalVision UK<\/title>\n<meta name=\"description\" content=\"There are many reasons you would want to appoint or remove a company director. 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