There has been a further delay to the ban on UK companies appointing corporate directors. There is, as yet, no new firm implementation date.
The Companies Act 2006 currently allows companies to appoint corporate directors as long as at least one director is an individual. As part of the drive to increase corporate transparency, the Small Business, Enterprise and Employment Act 2015 introduced a ban on corporate directors, subject to certain exceptions. The relevant sections were scheduled to come into force in October 2016. However, the Companies House timetable now states that the detail of the exceptions is still under development and that they will announce the implementation date as soon as it is available.
Once the ban on corporate directors comes into effect, there will be a 12-month grace period for existing corporate directors.
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