While hiring a company secretary is no longer legally required, many private limited companies opt to do so because of the critical tasks this role covers. As providers of company secretarial services, we understand the substantial value a company secretary adds to private businesses. Here, we highlight the responsibilities and significance of this position to assist you in determining whether your business should consider bringing one on board.
The Role of a Company Secretary
In general terms, a company secretary is responsible for shareholder administration, communication, statutory compliance, and corporate governance. More specifically, a company secretary typically handles the following duties:
Meetings and Communications:
- Organising all aspects of shareholders’ and directors’ meetings, including preparing agendas, distributing supporting documents, recording minutes, and ensuring compliance with regulatory requirements.
- Serving as the primary contact for shareholders, disseminating announcements and correspondence regarding dividends, share ownership, and transfers.
Records, Returns, and Documentation:
- Completing and submitting the annual return and other statutory documents, such as directors’ reports, annual accounts, and auditors’ reports.
- Maintaining statutory books and records.
- Safeguarding the company’s legal documents.
- Acting as a signatory on legal documents, cheques, and other banking materials on behalf of the directors.
Compliance and Accuracy Assurance:
- Ensuring that the company’s internal governance aligns with its articles of association, the Companies Act 2006, and other legal obligations.
- Notifying Companies House of any changes in share capital or administration, such as new appointments or resignations.
- Making sure the registered office address is correctly used for communications and that the company’s contact details are accurately represented in all written materials, including the website and business cards.
The Advantages of a Company Secretary
Many companies hire a company secretary because the responsibilities associated with the role must be fulfilled regardless of whether a secretary is appointed. Without one, the directors assume all secretarial duties. Hiring a company secretary not only ensures these tasks are performed correctly but also saves directors considerable time and effort.
A qualified company secretary can also help prevent confusion regarding company ownership and management, provide guidance on company law, and maintain meticulous records and documents. This can be crucial for the smooth and profitable operation of the business.
Additionally, if directors or shareholders are considering a sale, a company secretary’s work can significantly enhance the company’s valuation and facilitate sale negotiations and due diligence.
A company secretary can be an invaluable asset to your business, whether you’re just starting out or planning an exit strategy after years of operation. That’s why we prioritise delivering top-notch company secretarial services; we understand how vital this role is to your business’s success.
For more information or for expert advice on business or personal legal issues, contact us at info@carterbond.co.uk or email us at www.carterbond.co.uk or call us on 020 3475 6751.
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