There are about 1.9m limited companies in the UK, making up about a third of the total business population. On behalf of shareholders, company directors run limited companies, with most owning shares in the company. Every private limited company must have at least one company director, appointed by the shareholders who form the company.
There are two types of company director – executive and non-executive. Non-executive directors are not involved in the day-to-day running of the business; they normally sit on the company board and input at a higher strategic level, on a paid part-time basis. An executive is registered at Companies House as a director, while a “non-exec” isn’t. Non-execs still have the same legal responsibilities as execs.
The board appoints a managing director, who has overall responsibility for steering, managing and safeguarding the company. As explained on the Law Donut website, the appointment, exit or change of particulars of any director must be reported to Companies House within 14 days.