Turner Little looks at the Companies Act 2006 removing the requirement for all but PLC’s to appoint a Company Secretary.
Was this a wise move? Perhaps not!!
The facts is that, although private limited companies no longer need to appoint a Company Secretary, none of the requirements of that position were removed. The responsibilities were simply passed on to the directors. In addition, the penalties for failing to comply with most of the matters a Company Secretary would deal with were increased, in some cases by ten-fold.
In any small business whether new or existing and prosperous, it is important for the Directors to focus on the day to day sales or activities of the Company without the additional burden placed on them by having to deal with other administrative needs placed upon them by the removal of the requirement to have a Company Secretary. This is why Company Secretarial Services are popular and much sought after amongst expanding businesses especially by those who have fallen foul of the increased penalties imposed for failing to comply with statutory requirements.
A Company Secretary can either be an individual or a Corporate body. The use of a Corporate Secretary has numerous benefits including dealing with Annual Returns, documenting changes to the Company in accordance with legislation and with the on-going maintenance of the Statutory Registers of Companies. Most important is having an expert at the end of a phone to advise on any problems which arise in relation to Company matters. For start-up Companies in particular, Corporate Secretary providers can assist with formation of companies, assistance with the opening of business bank accounts for the company and the on-going supply of corporation documentation to the bank should they require it.
Corporate Secretaries are also always on hand to assist with any corporate requirements such as the drafting of Board Resolutions or Agreements that may be required by the business owners. Where structural changes are concerned, it is imperative that such actions are resolved and recorded correctly in the Statutory Registers of the Company as well as the appropriate filings being made at Companies House.
Regardless of the new legislation, it is highly advisable to utilise Corporate Secretarial Services on an on-going basis. The annual cost of doing so can be significantly lower than the fines imposed from missing a single statutory deadline.
Turner Little
Contact Turner Little on 01904 783101 should you wish to discuss our Company Secretary service in greater detail.
