Alternate director

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Updated: Aug 20, 2021

The articles of association of a company sometimes give a director power to appoint another person. known as an alternate director, to act for him at a specified meeting of the board of directors which he is unable to attend. The extent of the authority of the alternate director and his entitlement, if any, to remuneration will be determined by the relevant paragraph in the articles. The approval of the other directors is a common requirement. Alternate directors should not be confused with ‘associate directors’. nominal appointees to the board representing, say, employees’ interests, nor should the concept be confused with the rotation of board membership, whereby directors take it in turn to resign each year and apply for reappointment. Alternate directors are peculiar to the U.K.

Reference: The Penguin Business Dictionary, 3rd edt.



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