Part 1: Companies House Reform Directors Section 41: Section 40: amendments to clarify existing corresponding provisions
This section amends section 156C of the Companies Act 2006 as inserted by the Small Business, Enterprise and Employment Act 2015, a provision establishing transitional arrangements for changes introduced by section 156A and 156B around appointment of directors who are not natural persons. This amendment clarifies that the void appointment results in removal from office by virtue of this appointment, not ceasing to be a director at all. A director, whose appointment became void, cannot be treated as a de jure director, but normal principles as to de facto directors apply to such persons. Consequently both de facto and shadow directors remain liable for contraventions of any Companies Acts or other enactments notwithstanding that they will cease to hold office by virtue of the void appointment.
	The section also amends section 158 in respect of circumstances where an individual has been appointed as a director pursuant to regulations exempting them from the minimum age requirement (of 16 years) for a company director and where the terms of that exemption are no longer met.
	Finally, the section repeals section 159 of the Companies Act 2006 which no longer serves a purpose.