Advice on Directorship

S

Sue15

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Hi Peoples
Can you tell me if a Director can be an employee,that is work in limited company and pay tax and prsi as an employee.
Thanks for reading,
 
Re: Advice on Directership

Thanks Mathepac, if you can could you give me some examples when you can't be a employee and a director,please
 
Re: Advice on Directership

Hmmm...if it disallowed by the company's articles & memorandum such as in a charity where the directors must be volunteers
 
But a director has different entitlements to an ordinary employee. Have a read of the Revenue website to find out the differances.
 
Sue15 said:
Hi Peoples
Can you tell me if a Director can be an employee,that is work in limited company and pay tax and prsi as an employee.
Thanks for reading,
Click to expand...
when the director is a proprietary director and controls more than 15% of the company they can't use the employee prsi rates.
 
Many thanks for all your help.If I could ask one more thing on this topic,if a Director pays PRSI at class A are they then entitled to use this for eye exams and dental check ups and also use it for social welfare eg. Fis,unemployment if they are needed at a later stage if company stops trading.
 
Yes they are as slong as the Social Welfare (SCOPE) are happy that it was correct for the director to be on class A!
 
Sue 15 I have similar query due to being in similar circumstance. I am employee and shareholder, and have just been elected as a director at the AGM. My query is do I have to withdraw from board meeting if my area of responsibility is being discussed.
 
jayman said:
Sue 15 I have similar query due to being in similar circumstance. I am employee and shareholder, and have just been elected as a director at the AGM. My query is do I have to withdraw from board meeting if my area of responsibility is being discussed.
Click to expand...

jayman,

Your query is not that similar and deserves its own thread with a suitable title for clarity - perhaps the mods will oblige.

I think you may be confusing "area of responsibility" with vested interest.

You are required to attend when your area of responsibility is being discussed - how else will your department be held accountable to the board?

In many instances directors with vested interests are required to absent themselves from board meetings so that the board can be seen not to have been unduly influenced by them in making decisions.

This could arise for example, when purchasing supplies or raw materials, or when selecting a service provider where one of the directors was involved with the company providing such a service in some capacity - as a business advisor, director, shareholder, owner, related by marriage or family, etc.

HTH

ONQ.
 
ONQ,
Thanks for reply, as I am a new to this site I didnt know how to open my own thread and this was the nearest to my own problem, i do know what a vested interest is however I was posting the question, as posed to me by a director(who does not welcome my presence on board). I was fairly sure that I should be present for all discussions especially those concerning my responsibilities as a manager. Thanks for the reply again it helps to confirm my original thoughts on the matter.
Jayman
 
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