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Are additional directors considered employees?

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mrubin
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Posts: 10
Joined: Tue Feb 25, 2014 9:53 am

Are additional directors considered employees?

Post by mrubin » Mon Oct 06, 2014 6:26 pm

Hi guys,

A quick question about directors and employees:
I run a consulting firm and would like to bring in 2 partners, whom I want to give shares equal to mine and make them directors. Will they be considered employees and them joining the company considered job creation?

Many thanks,
Alex

mrubin
Newly Registered
Posts: 10
Joined: Tue Feb 25, 2014 9:53 am

Re: Are additional directors considered employees?

Post by mrubin » Sat Oct 11, 2014 5:19 pm

I guess there's no straightforward answer, but could the gurus here take an educated guess?

Cheers,
A

hham1224
Member
Posts: 145
Joined: Sun Apr 17, 2011 3:56 pm

Re: Are additional directors considered employees

Post by hham1224 » Sat Oct 11, 2014 10:46 pm

Giving equal share in the limited company means that issuing shares to them which means you lose your share and they take the share i.e. 33.33% each. This is called share holders which I am sure you are aware of. It has noting to to do with the employees' status.

The new directors and yourself will be considered employees if they are included on the company's payroll on an agreed salary.

I hope this may help.

mrubin
Newly Registered
Posts: 10
Joined: Tue Feb 25, 2014 9:53 am

Re: Are additional directors considered employees?

Post by mrubin » Thu Jan 29, 2015 7:30 pm

Thanks a lot Hammad, makes sense.
Sorry, just saw this now, but better late than never :)

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