All-corporate board: what the check means
Why it matters when every director of a company is another company rather than a person, what the law requires, and what to ask before you rely on it.
- Severity
- High
- Category
- Governance
- Plan
- Free and above
- Test code
- GOV-014
What this test checks
Checks whether every active director of the company is a corporate body rather than an individual.
Every company must have at least one director who is a person, so a board made up only of corporate directors does not meet that requirement, and it leaves no individual on the register who is directly accountable for the company. A wider rule that every director must be a person has been legislated but is not yet fully in force.
What a fail looks like
All of the company's directors are companies. You cannot see from the register who actually makes its decisions.
Harmless explanations
- Some group structures use corporate directors for administrative convenience, though they should still have a person on the board.
- An individual director's appointment may be pending on the register.
What to do
- Ask who the individuals behind the corporate directors are, and check those companies' own officers.
- Check the persons with significant control register to see who owns and controls the company.
Related tests
- GOV-012No Active Director
- GOV-030PSC Registered Check
- GOV-053Corporate PSC Without Registration Number
Part of the test catalogue. Every check Senserity runs, with its severity and the plan it is available on.
Last reviewed .