New companies often start with just one director, which is the statutory minimum for a private limited company in the UK. Where a sole director is appointed, this person is likely to be the business’s main shareholder and the individual responsible for running the business.

1. B O A R D S T R U C T U R I N G
FOR UK
COMPANIES

2. BOARD STRUCTURING
FOR UK COMPANIES
M A R K L Y T T L E T O N
2
New companies often start with just one director, which is the statutory
minimum for a private limited company in the UK. Where a sole director is
appointed, this person is likely to be the business’s main shareholder and the
individual responsible for running the business.

3. Where a sole director
is appointed, this
person is likely to be
the business’s main
shareholder and the
individual responsible
for running the
business.
3
M A R K L Y T T L E T O N
As the business grows, one director may prove insufficient,
since one person is unlikely to have enough time to cover
the many responsibilities involved in running a larger
company. In such circumstances, the business may opt to
appoint a board of directors, each taking responsibility for
managing and leading a certain aspect of the business.
The board structure of a larger company might include:
• A chairman, who oversees the business and is often
a non-executive
As the business grows, one director may prove insufficient,
since one person is unlikely to have enough time to cover the
many responsibilities involved in running a larger company.
• A managing director, who is employed to run
the business and draws a salary, reporting to the
chairman and overseeing the board of directors
• Three executive directors, who are paid a salary to sit
on the board, managing key areas of the business
such as operations, sales and finance
• Two non-executive directors, who may be paid fees
to advise on the strategic direction of the business,
as well as deciding the remuneration of executive
directors

4. M A R K L Y T T L E T O N .
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