The dangers of acting as a de facto or shadow director
Is it worth the risk? The dangers associated with acting as a de facto or shadow director
This article identifies the vulnerabilities for ICAEW members who act as a shadow or de-facto director. The web pages on Financial and accounting duties and responsibilities of directors should be read in conjunction with this article.
The Companies Act 2006 (CA2006) simply defines a director as including any person occupying the position of director, by whatever name called. However, general principles have been established in case law, including the recent Court of Appeal case of Smithton v Naggar ( EWCA Ci 939).