The Importance of Company Secretarial Work

The Importance of Company Secretarial Work

The company secretarial administration involved in starting and maintaining your company can be very complicated for first time directors.  However, when company secretarial work is carried out correctly, both the company and the directors will benefit.

Every limited company is expected to submit a Confirmation Statement each year.  This document verifies that information on the public record is correct. Even though there are no monetary penalties for late submission, the company is at risk of being struck off the Register at Companies House.

Any changes to People with Significant Control (PSC) must be reported to Companies House within 14 days of a company updating its PSC register. Significant control can be difficult to determine especially when overseas companies or trusts are involved.  Generally, to determine whether there is significant control you must look at whether an individual/company has more than 25% of the voting rights and/or nominal value of share capital, has power to appoint or remove the board of directors or otherwise has the right to exercise or actually exercises significant control.

For shareholders, having evidence of ownership (a share certificate) is crucial to prove entitlement to participate in voting and for dividend purposes.

Compliance with company law requirements can be confusing and deadlines are often hard to remember.  If you would like any assistance with company secretarial matters please do not hesitate to contact Ellie Greenwood – ellie.greenwood@kilsbywilliams.com.