From October 2008, the Companies Act 2006 has required that at least one director of every company (including dormant companies) is a natural person, as opposed to a corporate director. However, under transitional provisions, any company which, as at 8 November 2006 (the date the 2006 Act received Royal Assent), had only corporate directors, was given a grace period until 1 October 2010 to comply with the new rule.

As that grace period has expired, Companies House has indicated that it is now reviewing the position and deciding on what action to take in relation to companies who appear to still be in breach. Options available include issuing a direction requiring a company to appoint one or more natural directors. If a company fails to comply with the direction the company and every officer of the company who is in default (including shadow directors) commits an offence and may be liable to a fine up to £5000 on convictions. Companies House says that it will consider taking prosecution action if a company persistently fails to comply.