Limited company guide

Adding or removing directors and shareholders

Quick answer

Appointing a director requires their consent, an entry in the company's register and form AP01 filed within 14 days; the new director must also be identity verified at Companies House. Removing one uses form TM01 within 14 days, plus the correct internal process under the articles or the Companies Act. Share changes are different: a transfer needs a stock transfer form and possibly stamp duty, while new shares need an allotment return within one month. — LimitedCompany.Accountants, ICAEW-regulated accountants for UK limited companies.

The Companies House filings and internal paperwork for appointing and removing directors, issuing and transferring shares, stamp duty, and the identity verification requirement.

Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 21 October 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.

What do directors need to know about adding or removing directors and shareholders?

Appointing a director requires their consent, an entry in the company's register and form AP01 filed within 14 days; the new director must also be identity verified at Companies House. Removing one uses form TM01 within 14 days, plus the correct internal process under the articles or the Companies Act. Share changes are different: a transfer needs a stock transfer form and possibly stamp duty, while new shares need an allotment return within one month.

01

Appointing a director

02

Removing a director

03

Transferring existing shares

04

Issuing new shares

05

Before you act

Appointing a director

Check the articles for who has the power to appoint, obtain the person's written consent, pass the resolution, update the register of directors and register of directors' residential addresses, and file AP01 within 14 days.

The appointee must be identity verified at Companies House. Verification is personal and reusable, so a director of other companies will already hold a code.

Removing a director

Resignation is the simple case: a written resignation, a board note and form TM01 within 14 days. Removal against the director's wishes requires the statutory procedure, including special notice and the right to make representations, unless the articles provide a workable alternative.

Removing someone as a director does not remove them as a shareholder, does not cancel their shares and does not end an employment contract. Those are three separate exercises, and confusing them is the most common and most expensive mistake.

Transferring existing shares

Use a stock transfer form. Where the consideration exceeds £1,000, stamp duty at 0.5% is payable to HMRC and the form must be stamped before the register is updated.

The directors then approve the transfer if the articles require it, update the register of members, issue a new share certificate and report the change on the next confirmation statement.

Issuing new shares

Check authority to allot and whether pre-emption rights must be disapplied, pass the resolutions, issue certificates, update the register of members, and file the return of allotment (SH01) within one month.

New shares dilute existing holders and can change who is a person with significant control, so update the PSC register and file the change within 14 days of entering it.

Before you act

Rates, thresholds and deadlines quoted here reflect the 2026/27 UK tax year. Check current GOV.UK guidance, or ask us, before relying on them for your own company.

About the author

Waqas Sagar ACA FCCA FMAAT, Managing Director. 18+ years' experience advising UK directors on limited company accounts and tax, supported by a team with over 100 years' combined experience.

Reviewed by Waqas Sagar ACA FCCA FMAAT on 21 October 2026 · Next review: 21 April 2027

Primary references

Official sources and further reading

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Every answer in this cluster is written for UK limited company directors and reviewed against current HMRC and Companies House guidance.

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Frequently asked

Adding or removing directors and shareholders: questions directors ask

How long do I have to file a director change?

14 days from the appointment or termination, using AP01 or TM01.

Is stamp duty payable on a share transfer?

Yes, at 0.5%, where the consideration is more than £1,000. Transfers for no consideration are generally exempt but may need certification.

Can I remove a shareholder?

Not unilaterally. Shares are property; they must be bought back, transferred by agreement, or dealt with under the articles or a shareholders' agreement.

Does a new director need identity verification?

Yes. Directors must be verified at Companies House, and verification is done once per person.

What records are needed for adding or removing directors and shareholders?

Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.

How much does help with adding or removing directors and shareholders cost?

The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.

Can you take over adding or removing directors and shareholders from another accountant?

Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.

Can adding or removing directors and shareholders be handled online?

Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.

Which accounting software works best for adding or removing directors and shareholders?

We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.

What tax deadlines matter for adding or removing directors and shareholders?

The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.

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