Company directors are often classified as self-employed because they are responsible for managing the company and making strategic decisions on behalf of its owners. They typically have significant control over how they carry out their duties and are not subject to an employee’s level of supervision. As a result, they are typically considered to be working for themselves rather than for an employer.
Sometimes, a company director may also be an employee and receive a salary for their work. However, this is only sometimes the case, and many company directors are only compensated through the company’s profits or dividends on the shares they hold.
It is noteworthy that the classification of a company director as self-employed or an employee can have significant tax and legal implications. Directors need to understand their employment status and the obligations that come with it.
What is a company director?
A company director is responsible for a company’s overall management and direction. The company’s shareholders typically appoint them. They are responsible for making strategic decisions on behalf of the company, setting company policies, and overseeing the day-to-day operations of the company.
In some cases, a company director may also be a shareholder, meaning they have a financial interest in the company’s success. Company directors are often highly experienced professionals with expertise in the company’s industry. They play a key role in shaping the company’s direction and driving its growth.
In addition to their management responsibilities, company directors have legal obligations to the company and its shareholders. These obligations may include acting in the company’s best interests, disclosing any conflicts of interest, and complying with relevant laws and regulations.
