ACCA Corporate and Business Law (F4) Certification Practice Exam 2025 – Your All-in-One Guide to Success!

A de facto director is someone who acts as a director without being formally appointed to that position or registered as such. Their involvement in the management of the company and their functions mirror those of a conventional director, thereby placing them in a comparable role to that of a shadow director. The key characteristic of a de facto director is their active participation in the decision-making processes of the company, which could lead third parties to perceive them as an official director, despite their lack of formal appointment.

For clarity, a nominated director is one who is officially appointed to represent a group or stakeholder's interests, an executive director is typically involved in the day-to-day operations and management of the company, while a non-executive director is appointed to provide independent oversight and does not engage in daily management. Each of these roles has a defined formal appointment process, distinguishing them from a de facto director who operates without such formal recognition.