What defines a de jure director?

A de jure director is specifically defined as a director who has been properly appointed in accordance with the legal procedures set out in the governing documents of the company and relevant legislation. This means that their appointment must follow the rules established by company law, such as being formally named as a director in the company’s register and meeting any eligibility criteria outlined in the company’s constitution or bylaws.

The significance of this definition lies in the legal recognition and authority that a de jure director possesses, as they are fully authorized to perform their duties and make decisions on behalf of the company. This status contrasts with a de facto director, who may act as a director without having gone through the appropriate legal appointment process. Understanding this distinction is crucial for recognizing the legitimacy and responsibilities of individuals in the role of directing a company.