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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 32231
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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Can you be a director of 2 different companies and

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Can you be a director of 2 different companies and cross-charge services from one company to the other in the UK?
JA: Have you talked to a lawyer about this? In which country do you live? If different, which country is your legal question related to?
Customer: THE UK
JA: What steps have you taken so far?
Customer: none
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: no, I only need to know the answer to my question,Thank you

Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.

May I confirm if you are the only shareholder in each company or only in one or neither please?

Customer: replied 12 days ago.
2 shareholders and the same ones in both companies
Customer: replied 12 days ago.
that is okay, I can write to

Thank you. Are all shareholders (Of which you may be one) in full Agreement as regards ***** *****?

Joshua and other Law Specialists are ready to help you
Customer: replied 12 days ago.
I believe so, but just in case, can you please explain what this means? "Are all shareholders in full Agreement as regards ***** *****"

In other words Are all the shareholders in agreement as regards ***** ***** charging the respective companies are engaged in? i.e. this is not a case where a director is acting without the permission of the shareholders?

Customer: replied 12 days ago.
both of them are directors and shareholders on both companies
Customer: replied 12 days ago.
both are in agreement

Thank you. Providing shareholders are in agreement in relation to the arrangements you set out above, there is no difficulty in terms of a director acting as a director in relation to both companies.

The matters you will need to consider As a director in the circumstances is to avoid any conflict of interest. Accordingly, the extent that as a director you have a financial interest in the company which is receiving payment from a company which you act as a director, ordinarily you should seek to recuse yourself from such a decision. Obviously, where the case where the same directors and shareholders are in place for both companies, clearly that is not possible for both of you to do and in such circumstances, it would simply be a question of ensuring you have a documented resolution by the shareholders to confirm the arrangement is approved by them. This will ensure that as a director you can then implement that decision as a direct decision by the shareholders and this avoids any potential pain is a conflict of interest however unlikely those claims may be in the circumstances

Customer: replied 12 days ago.
Thank you for your answer!

I'm glad the above answers all your questions for now. If you have any follow up questions please revert to me.