The wrong direction

Natasha had no relevant experience

Being a company director sounds quite good, doesn't it?

It would look smart on your business card, something to impress them down the pub.

But there can be a lot more to it than that, as one Working Lunch viewer has discovered.

Nearly anyone can become a director - you don't necessarily need any particular skills.

And if things don't go well, you could find yourself carrying the can.

I was just doing it for money really.

Natasha Rogers

Natasha Rogers is a mother of two living near Oxford, who was working as a receptionist.

She was asked by a vague acquaintance if she wanted to become a director of his company, which handled payments to construction workers.

"Without really thinking about it hard I just said yes," explains Natasha. "I was just doing it for money really, thinking I was going to be better off."

As a director, you have to comply with the Companies Act.

This means:

you have to show a degree of skill and care in your work

you must act in the best interests of the company

you have to carry out any obligations which the law imposes on the company.

These obligations can include making sure accounts and other records are properly kept, holding meetings and keeping minutes.

But if a company is trading wrongly - or even fraudulently - the directors can be blamed, and could be liable for fines or imprisonment.

The business which recruited Natasha has moved away from the area and records are not being submitted.

Prosecuted

"Basically I can be prosecuted for all the company's accounts if they don't go in," she says.

"It's £5,000 per company and there's about 12, so we're talking about £60,000 I might have to pay.

Douglas Preece: Ignorance no defence

"And obviously I'm going to get a criminal record at the end of it, so I'm really worried."

But ignorance of the law is no defence, says lawyer Douglas Preece - although it can help if you've taken reasonable steps to do things properly.

"Provided they could show that they did something in relation to making sure the accounts were prepapred and delivered then they may have a defence," he says.

In the meantime, Natasha's advice to anyone thinking of becoming a director is very sensible - check out the company and the rules before you agree.