From 1st October 2010 all companies are required to have at least one director who is a natural person. (section 155 of the 2006 Companies Act)
Companies have not been allowed to incorporate with only corporate officers since 1 October 2008. Some companies incorporated before the 2006 Companies Act received royal assent were given a transitional period to comply.
This transitional period ended on 1 October 2010.
We have already written to many companies to advise them of this new requirement.
We intend to review the position at the end of October and decide on the best course of action for those companies who appear to still be in breach of section 155.
Under section 156 we can issue a direction requiring companies to appoint natural directors. If a company fails to comply with the direction the company and every officer of the company who is in default (this includes shadow directors) commits an offence.
A person guilty of an offence under this section is liable to a fine of up to £5000 on conviction.
Although Companies House will respond to complaints, we also intend to pro-actively seek compliance with section 155. Securing compliance with the Act is our primary objective and in appropriate cases we will consider taking prosecution action if the company persistently fails to comply.
If you require more information please contact the Technical Offences Team at Companies House by e-mailing email@example.com