May 2008

Company secretaries now optional

Bradford based Auker Rhodes Chartered Accountants are advising business owners of the effects of the latest changes implemented as a result of The Companies Act 2006.  From April 2008, the requirement for a company to employ a company secretary became optional.

Company secretaries were previously a statutory requirement.  Now however, if companies choose to, they can inform Companies House via WebFiling or on the 288b form that they no longer require company secretarial services.  It is now possible and legitimate to have a sole director and no company secretary.

Companies can, however, also amend their articles of association to include a requirement that a company secretary be employed.  As the company secretary is an officer of the company, they may be liable for any default committed by the company.

Richard Kenyon comments: “While a company secretary doesn’t have any official obligations, they often take care of many tasks that are legal requirements of a company.  Duties such as maintaining statutory registers, ensuring that the company files statutory information properly and supplying a copy of the accounts to everyone that is entitled to receive notice of them often came under the requirements of a company secretary.

Individuals should get in touch if they want advice on no longer employing a company secretary but ensuring their obligations are adhered to.”

For more information please contact Richard Kenyon on 01274 548000.

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