Can I make someone I dont know as director of my ltd company

[billpay]

Please help me

I have referred a Contractor CV to my client and client says the CV will be processed by an agency and agency will charge nominal percentage, which is fine.

I asked agency to issue the Contract in my ltd company name so I can keep some margin and pay the rest to contractor. But agency has a requirement that contractor has to be a Director in my ltd company.

Is there an issue if I make the contractor (who is not my friend) as director of my ltd company
Since he is director of my company he may see the original offered daily rate and he will know what my margin is , which is ok I will manage that.

Once he is a director of my company then agency will draft a contract on his name and on my/our ltd company. agency will pay money into my ltd company bank account. contractor who already has a ltd company will issue me invoice weekly/regularly to our ltd company and funds will be transferred from my ltd company bank account to his ltd company bank account.

Looks complicated but please read and suggest what is the best options

My intention is to keep at least 10% of the rate as margin

[Crossroads]

Oh dear

Are you a sockie ?

Tell the agency he won't be a director. End of.

[billpay]

Oh dear

Are you a sockie ?

Tell the agency he won't be a director. End of.

If he is not a director then Agency can not issue a contract

My accountant says making someone as a Director will not lead to any complications also Director is not a shareholder

[Crossroads]

Get a new accountant

[BolshieBastard]

Ignore those saying "get a new accountant" and "oh dear" etc.

Yes, appoint someone who you dont know as a director of your co. everything will be fine and you've nothing to be concerned about. Trust me, Im a doctor

[billpay]

Or

I can ask agency to pay me continuous referal fee and deal with candidate directly

Or

I can set up a new ltd company where me and my friend will be directors

Give me some ideas and I am sure there are many people who does sourcing candidates to the clients/agencies and keep some margin, how are they doing then ?

I am sure there are ways

[stek]

Or

I can ask agency to pay me continuous referal fee and deal with candidate directly

Or

I can set up a new ltd company where me and my friend will be directors

Give me some ideas and I am sure there are many people who does sourcing candidates to the clients/agencies and keep some margin, how are they doing then ?

I am sure there are ways

Maybe you could Section yourself?

[SlipTheJab]

Or maybe just do a fellow contractor a favour like most have done here, I got an ex permie colleague at my old client co his first contract role recently (well he got himself the role obviously as I didn't take the interview for him!), my financial benefit never came into my thoughts, who knows one day someone may do similar for me, it's called karma baby

[northernladuk]

Is there an issue if I make the contractor (who is not my friend) as director of my ltd company

I can set up a new ltd company where me and my friend will be directors

I think you are making this up....

Well I hope you are....

[NotAllThere]

If he is not a director then Agency can not issue a contract
...

Yes they can. They have an internal rule. It will be changed if they smell the money. They won't want to piss of the client, who, from what you have written, you found, not them. You might be able to put pressure on the agency by going back to the client and explain that the agency they recommended are playing silly beggars, and do they have another one.

While I wouldn't do it, I can't see an issue with making him a non-executive director. But I Am Not A Lawyer.