Question about Forming Ltd Company, Rights of Directors?

Hello,

I'm in the process of starting a ltd company. I will be investing all the funds being used in setting the company up and will be the 100% owner.

I know that you need 2 Directors when setting up a ltd company and a secretary. I was assuming I would be a director and the secretary, my question relates to the second director.

Assuming I get a friend or family member to take on this role, what rights/powers do they have?

Is it possible to have them listed in this capacity so they have no ownership rights for the company or influence in decision making? If I were to have a falling out with the second director could they in theory make claim to part of the company?

Just wondering what the level of responsibility involved is and how limited it can be?

Thanks in advance

Hi,

A limited company can have any number of directors as they are basically employed by the shareholder(s) to run the company. However being a director does not imply being a shareholder ( or vice versa) and it is the shareholder(s) that own a company. If you intend to own 100% of the company shares then you are the owner of the company. The other director will have legal duties on behalf of company in the eyes of Revenue however if he/she has no shares, they own nothing of the company and are simply employed by the company in some capacity or have agreed to act as a named director under law without any day to day role. It is only if and when this other director eventually obtains shares in the company from you when his rights would change.

See the series of information leaflets on directors rights and responsibilities at www.odce.ie

Can a minor (under 18) be a company director? I presume they can be a shareholder OK.