Director duties and Companies House filings for block companies

Your duties as a director

Directors of a block company have the same legal duties as any company director:

• act within the company’s articles and use powers for their proper purpose;
• promote the success of the company for its members as a whole, not a faction;
• exercise independent judgment;
• take reasonable care, skill and diligence;
• avoid conflicts of interest and declare any interest in a contract (for example, a relative’s building firm bidding for works);
• do not accept benefits from third parties, such as insurance commission.

Because service charge money is held on trust, directors also act as trustees of that money in practice.

Annual filings

• Confirmation statement at least every 12 months.
• Annual accounts filed at Companies House (most block companies are micro-entities). A company holding service charge funds is not usually dormant.
• Corporation tax: tell HMRC if the company has taxable income such as bank interest or fees.
• Keep the registers of members, directors and people with significant control up to date.

Identity verification

Since 18 November 2025, new directors must verify their identity with Companies House. Existing directors must verify by the company’s next confirmation statement.

Protecting yourself

• Take out directors’ and officers’ insurance.
• Minute your reasons: a short note of why you chose a contractor or approved a cost is the best defence later.
• Take professional advice on legal, valuation and safety questions, and record it.
• Never mix the company’s money with your own, or service charge money with the company’s other money.