The Company Secretary is responsible for the administration of a company. The role is important, primarily because, the secretary ensures the organisation complies with the relevant legislation and regulations put forward by the Companies Act 2006. It is important to note that there is no requirement for a private company in the UK to have a Company Secretary (where the duties will fall to the directors). Increasingly companies are recognising the value of outsourcing these duties to a provider who can organise these secretarial services for them. This is beneficial because it not only affords time to the directors to act on their other duties, but it ensures that the company is acting according to the strict requirements of the Companies Act 2006.
The consequences of not complying with the Companies Act can be very serious. In extreme circumstances it is possible the Registrar may assume the company is no longer acting properly and may take steps to strike it from the register (the company ceases to exist and its assets are stripped). If it is deemed the company is in operation, the Company Officers (its Directors and Secretary) may be prosecuted by way of criminal sanction as they are personally liable for a company to conform with the statute. Companies House are also able to enforce fines.
Company Accounts
Failure to deliver the company accounts on time is a criminal offence. A financial penalty can also be enforced which can be up to £1500 (Private Company) and £7500 (PLC). To ensure the accounts reach the Registrar within the period specified by the Act, the Company Secretary must act to ensure the accounts arrive within the time allowed.
Striking off a company
The company accounts also need to be up to date for the process of striking off a company (the removal of a company from the Register). This is where a company has run its course and is more beneficial to strike it off to reduce time and money than maintain its business. This is more advantageous than insolvency because it is a faster process which removes the costs and liability of the directors of the on-going company. The process of striking off is still a lengthy process and requires significant expertise for it to be carried out efficiently. If you would like advice on striking off a company, Elemental CoSec is a leading provider in company secretarial services who can help and advise the removing of a company from the register.
As well as acting principally to ensure the company complies with the legal requirements, a Company Secretary provides advice and guidance to the Directors on the company’s Articles of Association and relevant laws and regulations. Therefore, the role of the company secretary is paramount to the company’s success as the role maintains the company runs smoothly and efficiently.
Elemental Cosec are experts in their field at providing company secretarial services in London. If you require any help regarding the company secretary, please get in touch with them.
This article is provided for information purposes only and is of a general nature. Specific advice should always be obtained if you are in any doubt as to your legal responsibilities and no liability is accepted with respect to this article.
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