A private company limited by shares is being incorporated with a single director. Which statement is correct under the Companies Act 2006?
Answer and explanation
Correct answer: B. One director is enough, and that director must be a natural person
- Step 1: A private company needs at least one director (a public company needs two).
- Step 2: At least one director of every company must be a natural person, so a corporate-only board is not permitted.
Answer
One director is enough, and that director must be a natural person.
Why not the others: No company secretary is needed for a private company; a corporate-only board breaches the natural person rule; two directors are demanded only of a public company.
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