student asked to be company director

S

scotslass

Guest
A friend has been asked to be a director of a small business. he is currently a student at a 3rd level college as part of a Back to Education course. Previously he was receiving Job seekers allowance. He will not be paid for being a director. Will it affect the payment he is getting for the B to E course?
 
He'd be a fool to take on directors responsibilities without being "compensated".

I think he'll have a hard job persuading the social welfare if he does so.

This is a special case and should be referred to an Inspector.
 

Who has asked him? Is this company under the control of a parent or other close relative? Will he have a management role or other work duties in the company? Will he have shares in the company?

onq said:
I think he'll have a hard job persuading the social welfare if he does so.
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Why do you say this? This will surely depend on the circumstances of the case, hence my questions above.
 
student and directorship

He is a nephew of the person setting up the company. He will have no shares. He will have very few responsibilities initially, but part of his study involves business management.
 
As a director of a company, he has several [broken link removed] as soon as he agrees to become a director.
 
If he is a director he will have plenty of responsibilities. Whether he's aware of them or not is another story.

If it is a start-up, and he has no financial interest in the company, he probably has little to gain and should probably steer clear. That said its impossible to give proper advice here without knowing the full facts.
 
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T McGibney said:
Why do you say this?
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He will be both deemed to be working and on a student gig - no go.
The added issue is whether he's being paid.

Bad enough suggesting he's taken up a directorship and does nothing.
How silly will it look if he says he's also doing it for no money?

A Director with responsibilities doing nothing for nothing?
Why become a Director then - just doesn't stack up.

This will surely depend on the circumstances of the case, hence my questions above.
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Like I said above - a special case.
 

The country is full of company directors who don't work in the company and who don't get paid by the company. Most of these are spouses of the person running the company. The fact that they are a company director doesnt impact one whit on any entitlements they have in relation to social welfare.

It seems to me that you are scaremongering in saying that social welfare will deem this person to be working when this is plainly not the case.
 
IMHO the duties and responsibilities of being a director should not be taken lightly. If it's just to make up the numbers then I would avoid, relative or no relative. If the post is on the written understanding that something will be offered when qualified, then that may be a different story. Quid pro quo.

Your friend should understand that if they are just putting their name to the BOD which is effectively just the relative running a one person show, you friend will still be responsible and recorded as such as a director if anything goes wrong. In the UK you can have one director but not in Ireland as far as I am aware. I know that because of this lots of silent directors are present in companies registers which I think is a nonsense situation that needs reform.
 
Woodie said:
In the UK you can have one director but not in Ireland as far as I am aware. I know that because of this lots of silent directors are present in companies registers which I think is a nonsense situation that needs reform.
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Your correct, they have single director companies in the UK, but every Irish company must have at least two directors. Reform is on the way in the Companies Consolidation Bill which paves the way for single director companies here in Ireland too.
 
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