What does "Inactive principal" mean?

I am researching the directorship of a company using a UK directors report. However, I cannot establish what this means! The term "Inactive principal" is placed next to two of the Directors names, I believe they have just retired or sold the company if that helps.

I am guessing that the term menas a person with some level of ownership who does not actively particpate in company decsions.

Like a rich CEO?
....
... or Paris Hilton, of course... :bugeye:

I am guessing that the term menas a person with some level of ownership who does not actively particpate in company decsions.

Yes, that's correct. Keep in mind that "some level of ownership" might be misleading because the term "principal" generally indicates having invested in more than just a small percentage of the company.

Cheers everyone that is as I thought, some sort of backseat ownership.

Like Mary Kate and Ashley Olsen....

I think you're spot on!