Cost to Remove a Director from Companies House: An Overview

Removing a director from Companies House in the United Kingdom involves a procedure that incurs expenses. It is important to understand the process and costs involved to ensure compliance with legal requirements and fulfill obligations to Companies House UK.

This article provides an overview of the cost and procedure for removing a director from Companies House. It explores the legal requirements, expenses, and steps to take for the immediate removal of a director.

Key Takeaways

• Removing a director from Companies House involves a procedure that incurs expenses.
• It is important to understand the process and costs involved to ensure compliance with legal requirements.
• By fulfilling obligations to Companies House UK, the necessary changes can be made.
• The cost to remove a director can vary depending on the specific circumstances.
• Understanding the legal requirements and filing the necessary forms is crucial for a successful removal process.

Understanding the Procedure to Remove a Director from Companies House

Removing a director from Companies House involves a specific procedure outlined in the Companies Act 2006. It is crucial to follow these guidelines to ensure compliance with company law and avoid any legal complications. Here is an overview of the steps involved:

Appointing a New Director

Before removing a director, it might be necessary to appoint a new one to ensure the continued smooth operation of the company. If this is the case, the company should follow the procedures outlined in the company’s articles of association. The appointment of a new director can be done by ordinary resolution of the shareholders or by the board of directors.

Filing Form TM01 to Terminate the Appointment

To remove a director from Companies House, the company must file Form TM01, also known as the “termination of appointment” form. This form must be submitted to Companies House within 14 days of the director’s resignation or removal. It is important to note that the director in question must also sign the form, stating that they agree to the termination of their appointment.

Complying with the Companies Act 2006

The Companies Act 2006 outlines various rules that companies must comply with when removing a director. For example, a company cannot remove a director if their appointment is for a fixed term, unless the company has a power to do so in its articles of association. The rules applicable to limited companies and corporate directors should also be considered when removing a director.

It is always advisable to seek legal advice before removing a director from Companies House to ensure that all legal requirements are met. This will help to avoid any complications that may arise later on.

Expenses Related to Removing a Director from Companies House

When it comes to removing a director from Companies House, there are several expenses to consider. The costs can vary depending on the company size, the complexity of the procedures involved, and the professional services required.

Under company law, there are several procedures that must be followed, which can result in additional expenses. These requirements include giving notice to the director in question, calling a general meeting, and passing an ordinary resolution. If a special notice is required, this can also add to the expenses.

One of the primary expenses of removing a director from Companies House is the cost of complying with the procedures. This can include fees for professional services and legal advice. It’s essential to make sure that the procedures followed comply with the Companies Act 2006 to avoid any legal complications, which can result in additional costs.

Other expenses that may arise when removing a director from Companies House include updating the public register with the new director’s details, changing the company name, and paying for company formation if a new company is being set up. These costs can vary depending on the specific circumstances of the removal.

In the case of a sole director company, there may be additional expenses involved in appointing a new director as there must be at least one natural director. The appointment of a corporate director can also add to the expenses. Before appointing a new director, it’s important to consider their position in any other companies to avoid any potential conflicts of interest.

If you require assistance with removing a director from Companies House or have any questions about the expenses involved, it’s best to get in touch with a professional service provider who can guide you through the procedures.

Additional Considerations and Legal Requirements

Removing a director from Companies House requires compliance with certain legal obligations. This section covers important considerations and legal requirements to keep in mind throughout the process.

Calling a General Meeting

To remove a director, the company must call a general meeting and pass an ordinary resolution. A general meeting is a formal gathering of shareholders and directors to discuss company matters. An ordinary resolution means that a simple majority of shareholders must agree to the resolution to remove the director.

Special Notice and Service Address Requirements

When calling a general meeting to remove a director, the company must give special notice to all shareholders. This notice should state the intention to remove the director and provide relevant details such as the director in question, the date of the meeting, and the proposed resolution to remove the director.

It is also important to note that directors must have a service address, which is the official address where they can receive legal communications. The service address must be included in the special notice to ensure that the director in question is properly notified of the proposed resolution to remove them.

Implications for Company Directors

Removing a director can have implications for other directors and the company as a whole. For example, if the director in question is the only natural director of the company, the company must appoint a new director before removing the existing one. Additionally, removing a director with specific responsibilities or skills may require the company to find a replacement with similar expertise.

Submitting the Resolution to Companies House

Once the ordinary resolution to remove a director has been passed at the general meeting, the company must submit Form TM01 to Companies House. This form provides details about the director’s termination and must be filed within 14 days of the resolution being passed.

Removal of Directors in Limited Liability Partnerships and Private Limited Companies

The process for removing directors in limited liability partnerships and private limited companies follows similar procedures to those for other companies. However, there may be additional legal requirements to consider. For example, limited liability partnerships must hold a meeting of partners to pass a resolution to remove a designated member, and private limited companies must have at least one director who is a natural person.

Appointing a Corporate Director

It is possible to appoint a corporate director, which is a legal entity that acts as a director instead of an individual. However, there are restrictions on appointing corporate directors. For example, public companies cannot have corporate directors, and private companies must appoint at least one natural person as a director.

By following the appropriate procedures and fulfilling the necessary obligations, Companies House can be notified of the director’s removal and necessary changes can be made.

Conclusion

In conclusion, removing a director from Companies House involves a specific procedure, legal requirements, and expenses. If immediate removal of a director is necessary, then Form AP01 must be filed, and at least one natural director must remain to comply with company law. The director in question should also be aware of their position in any other company and how their removal may impact their role elsewhere.

Form TM01 must be filed to terminate the appointment of a director, and a new director can be appointed if necessary. It is important to consider additional legal requirements such as calling a general meeting, giving special notice, and updating the public register, with a submitted resolution to Companies House.

Overall, following the appropriate procedures and fulfilling the necessary obligations is key to removing a director from Companies House. By taking the appropriate steps and complying with company law, a director can be successfully removed, and necessary changes can be made.

FAQ

Q: What is the cost to remove a director from Companies House?

A: The cost to remove a director from Companies House is £8 if you file the TM01 form online, or £10 if you file the form by post.