Any pointers to web sites would be helpful as Google turns up so much but not what I am seeking.
I am part of a 'loose association' of like minded firms (around 10 others) around the UK. We meet monthly exchange views, get better purchasing power with our combined size but some want to form a limited company as this could open new doors with corporate clients. However alarm bells are ringing in my ears.
Surely if all of us sign and become directors we the have a liability for the actions of others which I feel is not acceptable unless I am misunderstanding the obligations of directors of limited companies.
we form 1000's of UK companies every year and work closely with Companies House.
If you are all appointed as directors then yes you have a legal obligation to work together to ensure that the company remains compliant with the law, i.e. submits accounts and returns on time, notifies the registrar of any changes and pay any taxes due to the Revenue. Unless you have a trusting and mutual relationship with the other directors then it would not be wise to form a company in this way.
One advantage of operating as a limited company however is the differentiation you can get between the people involved in the day to day running of the company (The directors) and the people who own and invest in the company (The shareholders). The shareholders can also vote on many issues by calling a general meeting. In most companies we form the two roles are usually fulfilled by the same person(s).
It may be worth just appointing a small number of directors and then alloting shares to all the parties within the association. This would mean that each shareholder has a stake in the company and some degree of decision making ability. For the directorship duties you may wish to provide some kind of remuneration from the companies profits.
The other more preferable option is to form a company limited by guarantee, this is particularly suited if the company is not seeking to make profit. LBG status means that any profits generated by the company have to be reinvested in the objects (these are defined by you). The gaurantors of the company have a liability usualy limited to just 1.00 GBP.
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