Company Roles Explained
Learn about directors, shareholders, and other key roles in a limited company.
Different types of companies have different key roles. Here's a brief outline of these roles in three common company structures:
Companies Limited by Shares
This type of company is owned by shareholders who invest money and own parts of the company.
- Shareholders: Own all (or part) of the company by holding shares.
- Directors: Manage the company's daily affairs.
- Persons with Significant Control (PSCs): Have significant influence over the company, typically owning over 25% of shares or voting rights.
- Secretaries (Optional): Not required, but can help with legal and administrative tasks.
Companies Limited by Guarantee
These companies are supported by guarantors rather than shareholders.
- Guarantors: Pledge to support the company financially up to a specified limit.
- Directors: Manage the company's daily affairs.
- Persons with Significant Control (PSCs): Have significant influence over the company
- Secretaries (Optional): Assist with administrative duties.
Limited Liability Partnerships (LLPs)
LLPs are partnerships where some or all partners have limited liabilities.
- Member: Participates in the business, shares profits, and has limited liability for the company's actions.
- Designated Member: Holds the same responsibilities as members, plus crucial administrative tasks like legal filings and compliance.
- PSCs: Individuals or entities with significant control over the partnership.
- Note: An LLP must have a minimum of two designated members at all times.
Each company type has a unique structure with roles that contribute to its management and legal operations.