Under Irish law, Non-Executive Directors hold a crucial position in corporate governance. According to the Company Act 2014, the role of non-executive directors is defined by their duties and responsibilities concerning the company. Here are the key aspects to consider:
1. Role and Responsibilities
To provide a detailed analysis of different types of directors in Ireland and their responsibilities, we refer to the Companies Act 2014. This law outlines the main types of directors, their authority, and obligations. Below is an expanded overview based on the law and regulatory acts:
1. Executive Directors
Key Characteristics:
1. Unlimited Liability of Shareholders: In Unlimited Companies (UC), shareholders have unlimited liability for the company’s debts. This means that if the company faces financial difficulties or is liquidated, shareholders are obligated to cover all debts and liabilities, even using their personal assets. This is in contrast to limited liability structures (such as LTD or PLC), where shareholder risk is limited to the amount they have invested in shares.
Key Characteristics:
1. Shares Traded on the Stock Market: Public Limited Companies (PLCs) are companies whose shares can be freely bought and sold on stock markets. This allows the company to raise capital through public share offerings (IPOs) and attract both large and small investors. The company’s shares become available to the general public, and any investor can become a shareholder.
Key Characteristics:
1. Limited liability for partners:
• The main advantage of an LLP is the protection of the personal assets of the partners. This means that if the partnership faces debts or legal claims, the partners’ personal assets are not subject to seizure (unless partners commit fraud or gross misconduct).
• This is an important distinction from a general partnership, where all partners bear full responsibility for the firm’s debts.
