Who is considered a de facto director?

A de facto director is someone who performs the functions of a director and takes on the responsibilities associated with that role, despite not having been formally appointed as one. This means that the individual may be making decisions, influencing the management of the company, or acting in a capacity that typically belongs to an official director.

Recognizing a person as a de facto director is important because it helps hold them accountable for their actions regarding corporate governance, even if they lack the official title or legal standing. This concept is crucial in the context of corporate law, as it ensures that individuals who exert control or influence over a company cannot evade liability simply because they haven't gone through the formal appointment process.

The other options, while related to roles within a company, do not accurately capture the essence of a de facto director. A legally appointed director holds an official and recognized position, a shadow director acts in a similar capacity but without being publicly acknowledged, and a financial advisor doesn't carry the functional responsibilities of a director, focusing instead on providing advice without authority within the company's decision-making processes.