Appointing directors

In this lesson

1. 0:00 Director eligibility and appointment basics
2. 1:15 How directors are appointed and replaced
3. 2:21 Director service contracts and remuneration
4. 3:24 Disclosure requirements for director pay

About this lesson

You'll discover that directors must be natural persons aged at least 16 with no formal qualifications required, understand how first directors are appointed during company registration and how subsequent appointments work, and explore the controls in place—including two-year service contracts and shareholder voting—that ensure directors act in the company's best interests. The video explains why the low barriers to becoming a director encourage entrepreneurship and business formation, while also showing how the system protects companies through disqualification rules if directors fail to perform. You'll learn the practical mechanics: how directors are voted in by shareholders, how the board can make interim appointments between annual general meetings, and the requirement to notify Companies House within 14 days of any changes. The lesson also covers director remuneration, including the standard two-year service contract, the need for shareholder approval for longer contracts, and why remuneration reports matter to shareholders as a tool for assessing whether directors are incentivised appropriately. This content is essential for understanding the governance framework that underpins company law and will help you answer exam questions on director appointment procedures and the controls that balance director power with shareholder protection.

Duration: 4m