A recent case shows that when the chips are down, being a director is less about the title of your job with the company and more about the role you assume.
The case involved an insolvent company that went into liquidation in 2014 with a deficiency in excess of £1 million, mainly in respect of unpaid PAYE, National Insurance Contributions and VAT liabilities.
Following an investigation by the Insolvency Service, it was concluded that the company had traded while insolvent and that a former director, who had resigned as a director in 2013, had been paid more than £250,000 before the company collapsed and was still in fact acting as a director.
The man’s son had remained as a director. Both father and son were disqualified from acting as directors of UK companies for a total of more than eight years.