Section 156: Direction requiring company to make appointment

Companies Act 2006 · 2006 c. 46View on legislation.gov.uk

Part 10: A company's directors — Chapter 1: Appointment and removal of directors

If it appears to the Secretary of State that a company is in breach of—

  • section 154 (requirements as to number of directors), or

  • section 155 (requirement to have at least one director who is a natural person),

the Secretary of State may give the company a direction under this section.

The direction must also inform the company of the consequences of failing to comply.

Where the company is in breach of section 154 or 155 it must comply with the direction by—

making the necessary appointment or appointments, and
giving notice of them under section 167G,

before the end of the period specified in the direction.

If the company has already made the necessary appointment or appointments (or so far as it has done so), it must comply with the direction by giving notice of them under section 167G before the end of the period specified in the direction.

Nothing in subsection (4) or (5) affects the duty imposed by section 167G to give notice within the period mentioned in subsection (6) of that section.

A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 5 on the standard scale and, for continued contravention, a daily default fine not exceeding one-tenth of level 5 on the standard scaleone-tenth of the greater of £5,000 or level 4 on the standard scale.

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