DOES UK COMPANY NEED A COMPANY SECRETARY?
INTRODUCTION
UK companies do not need to appoint a company secretary. This was changed in 2008 with the Companies Act 2006. However, there are some benefits to appointing a company secretary, such as:
- They can provide legal and compliance advice to the directors.
- They can help to ensure that the company complies with all relevant regulations.
- They can take care of the day-to-day administration of the company.
- They can act as a point of contact for shareholders and other stakeholders.
If you decide to appoint a company secretary, you can do so by following these steps:
- Decide who will be the company secretary. This can be a director, an employee, or an external professional.
- Get the company secretary’s written consent to act in this role.
- File Form AP03 with Companies House. This form will notify Companies House of the appointment of the company secretary.
If you do not appoint a company secretary, the directors will be responsible for carrying out the duties of the company secretary. This can be a significant amount of work, so it Is important to consider whether appointing a company secretary would be beneficial for your business.
In-depth discussion of the role of a company secretary
The role of a company secretary has evolved over time. In the past, company secretaries were responsible for a wide range of tasks, including:
- Maintaining the company’s registers and records.
- Preparing and filing documents with Companies House.
- Providing legal and compliance advice to the directors.
- Overseeing the day-to-day administration of the company.
However, the Companies Act 2006 significantly reduced the number of mandatory duties of a company secretary. As a result, the role of a company secretary is now more focused on providing strategic advice to the directors and ensuring that the company complies with all relevant regulations
Duties of a company secretary
The specific duties of a company secretary will vary depending on the size and complexity of the company. However, some of the most common duties of a company secretary include:
- Providing legal and compliance advice to the directors.
- Overseeing the company’s compliance with all relevant regulations.
- Maintaining the company’s registers and records.
- Preparing and filing documents with Companies House.
- Arranging and attending board meetings.
- Communicating with shareholders and other stakeholders.
Managing the company’s internal administration
Benefits of appointing a company secretary
There are a number of benefits to appointing a company secretary, including:
- Improved compliance: A company secretary can help to ensure that the company complies with all relevant regulations. This can help to protect the company from fines and other penalties.
- Increased efficiency: A company secretary can help to streamline the company’s administration. This can free up the directors to focus on other tasks.
- Improved decision-making: A company secretary can provide legal and compliance advice to the directors. This can help the directors to make better decisions.
- Improved communication: A company secretary can act as a point of contact for shareholders and other stakeholders. This can help to improve communication between the company and its stakeholders.
Drawbacks of appointing a company secretary
There are also some drawbacks to appointing a company secretary, including:
- Cost: Appointing a company secretary can be a significant cost for small businesses.
- Time commitment: The directors will need to spend time training the company secretary and ensuring that they are familiar with the company’s operations.
- Lack of flexibility: If the company secretary leaves the company, the directors will need to find a replacement. This can be disruptive to the company’s operations.
Conclusion
Whether or not to appoint a company secretary is a decision that should be made on a case-by-case basis. There are a number of factors to consider, including the size and complexity of the company, the nature of the business, and the availability of directors with the skills and knowledge to carry out the duties of a company secretary. If you are unsure whether to appoint a company secretary, you should seek professional advice from a lawyer or accountant
