I'm sure that as opposed to bankruptcy being in a TD doesn't prevent a directorship. I think it depends on the articles of association of the particular firm.

Thanks tinsoldier that's what I hoped there seems to
be some conflicting information out there

Hi susie.

Will he formally become a director of a company with legal responsibilities for the way it's run? I ask only as often "director" is included in a job title without this formal appointment of responsibilities.

A trust deed doesn't stop you from being a director. However, he'd need to check the Articles of Association of the company to check they've nothing to say about a director being in a protected trust deed.

Hi TDA he will have responsibilities for the way the company is run will that make a difference

You say he is becoming a director at the end of the year but only has 2 payments to go, which will take him to what, October? Will it matter?

Sorry no I meant after he becomes a director he wills have 2 payments to make

Ah ok, apologies.

Again though, there is nothing to say you cannot be a director in a TD, and with there only 2 payments to go I can't see it being a problem

Hi susie

There is no restriction to being a Director of a Ltd company in a Trust Deed, this only applies to sequestration. So he should be fine.

Mark

Thanks Mark much appreciated - I can breath now.

Hi susie

no problem. It seems to be an area of confusion regarding limited companies, but there is no restriction. You can also get credit without being jailed!!

Mark

But there could possibly be something in the company's Articles of Association that is relevant in this respect Mark?

Or would that just be when an existing director signs a trust deed?

Hi TDA

You are correct and it would be wise to check the A of A's, however there's nothing in the legislation which prohibits the Directorship.

Mark