Tuesday, 5 November 2013

FAQ - What is meant by being involved in the “management” of a company?

The meaning has been interpreted extremely widely. There are no hard and fast rules as to what it means as every business is run differently. The courts look at matters on a case by case basis to determine whether a person’s role is effectively involved in the management of a business rather than that of an employee.

However, there are indicators that a person is acting beyond the remit of a mere “employee” and is effectively involved in the management of a business:

(i)            Being a signatory on the company bank account;

(ii)           Attending board meetings;

(iii)          Being involved in strategic planning;

(iv)          Being the “go to” person for customers and clients;

(v)           Otherwise making decisions that no other person can make and/or having no one to account to.