Legal Speak Made Easy

“Director”

It’s tempting to think that a “director” must be formally appointed to that position, but the Companies Act provides a much wider definition. “‘Director’ means a member of the board of a company … or an alternate director of a company and includes any person occupying the position of a director or alternate director, by whatever name designated.”

When it comes to deciding who is and isn’t a “director”, it’s the substance of the person’s position that counts, not their designation. “A rose by any other name,” as Shakespeare might put it, although not necessarily smelling quite as sweet. Consider, for example, a delinquent director trying to hide their (unlawful) high-level participation in a company by adopting an inoffensive title like “Liaison Officer” or “Floor Supervisor”. It just won’t wash.

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